January 9, 2009; News 12 This Morning
A new plan is in the works to help you hold on to your house.
Lawmakers have reached a deal with Citigroup Inc. to let bankruptcy judges change home loans to prevent foreclosure. This doesn't apply to all mortgages. Citigroup is allowing it only for the ones set up before the bill is signed, making it more of a reactive bill than a proactive bill.
Until now, the lending industry has battled against this idea, arguing that it would force lenders to hike mortgage rates, but apparently, those at Citigroup are willing to give it a try.
Lawmakers hope to attach this to President-elect Barack Obama's economic stimulus plan, but again, this agreement only applies to Citigroup. No other lending companies say they'll take part in it yet, but some financial experts hope they might after this news.