Let the banks figure it out!
PRI’s Marketplace radio program just had a segment about a bill winding through Congress that allows bankruptcy judges to order new terms on loans. (link)
Bankruptcy professor Adam Levitan justified it because new terms are cheaper to banks than foreclosure.
Um, if that’s true, why aren’t the banks doing it already? Sorry, it’s well-established that banks will do whatever they can to make money. I think they already know the most profitable decision.
Oh, and if this really becomes law, responsible borrowers will enjoy higher rates and higher down payments.
Thanks, Big Brother!