The Foreclosure Morass

Bruce Bierhans

Attorney
(866) 735-1102 Ext 540

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I congratulate the Cape Cod Times for its' recent editorial favoring increased authority for Bankruptcy judges to modify sub-prime mortgage loans in bankruptcy court. However, this measure does not even begin to address the actual crisis created by unscrupulous sub-prime lenders and mortgage brokers. In the course of litigating sub-prime lending cases, we have learned the truth about how so many responsible borrowers fell victim to the lure of sub-prime loans. Mortgage companies hired motivational speakers to teach salespeople how to talk potential borrowers out of conventional loans and into sub-prime products. They were given "scripts" that were read to borrowers over the telephone telling them why it was good to roll all their credit card debt into their mortgages. They were told "not to worry" because they would be able to refinance before the interest rates changed (notwithstanding the severe prepayment penalties). The list of these practices is lengthy. Suffice it to say that many borrowers were victimized by professional con-men that then went on to pocket enormous commissions.. Many of these innocent victims are hard working folks stretched thin and struggling to pay their sub prime mortgages that are not eligible for bankruptcy. Nor should they be forced into bankruptcy to save their homes. Congress must enact legislation that not only increases the authority of bankruptcy judges, but also provides mandatory relief in the form of affordable commonsense modifications to sub-prime mortgages for those that are responsibly but desperately attempting to preserve their lives and their credit. We stand ready to assist consumers navigate their way through the murky waters of loan modification.