Dallas, Texas (PRWEB) September ten, 2011
Reed Allmand of Allmand Law (http://www.allmandlaw.com), has partnered with the National Association of Customer Personal bankruptcy Attorneys (NACBA) in backing the proposed Principal Paydown Program (PPP) intended to deal with the foreclosure crisis. The implementation of PPP would let underwater homeowners who file Chapter 13 bankruptcy to use their whole monthly house loan to the principal only for a period of time of 5 years by briefly decreasing their interest fee to zero.
According to a report by the Middle For Liable Lending, more than six million Americans have missing their homes to foreclosure and that number is anticipated to improve to 13 million by the conclude of 2014. The Creating Property Inexpensive Plan (HAMP) has failed abysmally in its efforts to tackle the foreclosure crisis, resulting in hundreds of thousands of bucks in misplaced equity and residence. Allmand and NACBA believe that PPP can reverse this pattern by utilizing Chapter thirteen personal bankruptcy to restore equity in underwater houses and give mortgage servicers an alternative to foreclosure.
In accordance to statistics launched by the Countrywide Association of Consumers Personal bankruptcy Attorneys, at the moment there are one.6 million lively and pending Chapter thirteen bankruptcy situations. Around 880,000 of these bankruptcy cases include mortgages. Each month an additional 22,000 new Chapter 13 bankruptcy situations that contain mortgages are submitted. With numbers like this, there is an option to use the bankruptcy procedure to battle the foreclosure and win.
By making use of the Principal Paydown Program in Chapter thirteen bankruptcy, home owners, home loan servicers and total communities can benefit in the following techniques:&#thirteen