Lawyers say President Barack Obama's new mortgage foreclosure prevention program, the Homeowner Affordability and Stability Plan (HASP), is stalling settlement of mortgage foreclosure litigation, bankruptcy actions and mediations.There is already a line of people waiting to test the program. Then there will be another line of people (like us) waiting to analyze how the program is really working. Is the program really helping people it was intended to? Will the program be easily implemented or will it be another dud (see Hope Now)? Or are we just throwing more good money after bad - but hey at least the funds are being spread beyond Wall Street this time - huh. While we really do not want to wait and see, we must.
...
Joy Harmon Sperling, a partner in the Florham Park, N.J., office of Day Pitney's consumer finance and creditors' rights practice area who represents mortgage lenders, said borrowers' attorneys have been declining settlements since the Treasury Department's announcement.
"There are cases I was close to settling where the borrower said, 'I don't want to settle, I want to see what I can get from the president,' " Sperling said.
...
The HASP appears to do or encourage what a lot of homeowners and their lawyers are trying to do through litigation.
"It gives homeowners potentially a stronger hand," Wertheim said. HASP has definitely slowed settlements of foreclosure cases, said Chris R. Arthur, a lawyer in the Charleston, W. Va., office of Samuel I. White P.C., a Virginia Beach, Va.-based boutique that specializes in representing secured creditors. Arthur said he's not sure whether putting the brakes on the process is a good thing or bad thing, but he's recently postponed mediation of a foreclosure matter because his client wants to see how the government programs affect the case.
In bankruptcy cases, bankruptcy lawyers are assessing whether access to a HASP program will help bankruptcy petitioners keep their houses, Arthur said.
And since there already is a line of people waiting to test the new program hopefully we will not have to wait long for results. We expect lenders to see throngs of people over the next few days...
No comments:
Post a Comment