Comments on: Why New Bankruptcy Laws Are Creating More Foreclosures http://www.therealestatebloggers.com/2007/11/10/why-new-bankruptcy-laws-are-creating-more-foreclosures/ Real Estate Blog, Mortgage, and Development News Fri, 20 Nov 2009 23:48:48 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: Christina Ethridge http://www.therealestatebloggers.com/2007/11/10/why-new-bankruptcy-laws-are-creating-more-foreclosures/comment-page-1/#comment-97631 Christina Ethridge Sun, 11 Nov 2007 00:43:48 +0000 http://www.therealestatebloggers.com/2007/11/10/why-new-bankruptcy-laws-are-creating-more-foreclosures/#comment-97631 Ok . . . I'm missing something. Whether someone files BK or forecloses, the bank still is left holding the bag. Now, instead of foreclosures being 'hidden' behind the mask of a BK and that same person being able to take on a loan again within 2 years, the person with the foreclosure will have to wait 4-7 years (current underwriting standards). People can still take risk, just not walk away as easily. There has to be a balance - prior to the laws it was ridiculously easy to simply toss aside frivolous mistakes. Now, it may be ridiculously harder, I don't know - but there must be consequences. What do you suggest? Ok . . . I’m missing something. Whether someone files BK or forecloses, the bank still is left holding the bag. Now, instead of foreclosures being ‘hidden’ behind the mask of a BK and that same person being able to take on a loan again within 2 years, the person with the foreclosure will have to wait 4-7 years (current underwriting standards). People can still take risk, just not walk away as easily.

There has to be a balance – prior to the laws it was ridiculously easy to simply toss aside frivolous mistakes. Now, it may be ridiculously harder, I don’t know – but there must be consequences.

What do you suggest?

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