Senators are currently mulling over cramdown legislation that will assist financially troubled homeowners in keeping their homes. [SEE: Today's Elsie Law's Daily Dose Of The Law below for the definition of "cramdown."]Historically, lenders and financial institutions have frowned upon cramdown laws. However, some banking companies are reluctantly getting on board. According to The Wall Street Journal, Citigroup is negotiating with lawmakers regarding the parameters of the proposed cramdown laws. Lenders are beginning to see the benefits of the mortgage modifying legislation. With cramdowns in effect, the supply of houses are less likely to skyrocket out of control.
[SIDEBAR: Homeowners should contact their Senator for updates on this proposed legislation.]
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