Bankruptcy…solution to the housing crisis?

…or a way to increase jobs…huh?

The United States is on the verge of witnessing the largest bankruptcy filings in recorded history. One of the reasons is due to the new Mortgage Restructuring Bill (now named The Helping Families Save Their Homes Act of 2009) passed by the House of Representatives yesterday with a vote of 234 to 191.

The new Bill allows bankruptcy judges to alter the mortgage terms so as to assist homeowners in avoiding foreclosure. Think about it folks! If you lost your job (like millions of Americans) and you could file bankruptcy and save your home; what would you do? You would file bankruptcy, of course. This is why bankruptcy filings will dramatically increase and people will be needed who have the skills to handle this mountain of work.

This new Bill requires a homeowner to first seek a negotiation or a voluntary loan change from their lender before filing bankruptcy. You know as well as I do that the majority of people do not know how to do this. Therefore, if you offer foreclosure mediation services, you will have no problem getting work from homeowners who are required to complete this first stage at least 30 days before filing bankruptcy.

Bankruptcy judges will then make the determination, based on the person’s income against the payments the homeowner has made before deciding whether an interest rate or principal reduction will be applied. Then, the value of the home will be determined by using federally approved appraisal guidelines.

If you thought the filings in 2005 (before the law changed) pushed the envelope to historical proportions you cannot imagine what is going to occur within the next few weeks and continue for many months and years to come. It is to your advantage to get the training you need to work in the field of debtor bankruptcy law so you will be in a position to earn a good living while helping others.