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Monday 9 April 2012

Loan Modification or Chapter 13 Cram-Down?

In 2009 Congress enacted the Helping Families Save Their Homes Act of 2009, which among other things requires federally insured lenders to engage in loss mitigation actions for the purpose of providing an alternative to foreclosure, including forbearance, loan modification, and deeds in lieu of foreclosure. Perhaps the most popular among these initiatives is loan modification. Loan Modification is the restructuring of the loan.

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