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Citigroup agrees to support Mortgage Modifications


January 08, 2009
Topic: Bankruptcy

Citigroup has agreed to back the Democrats' plan for modifying existing mortgages through a Chapter 13 plan.  Again, currently first mortgages cannot be modified, even if the exisiting mortgage more than the home itself is worth.  Under this plan, the mortgages could be modified as second mortgages or vehicle loans can be.  There are exceptions to the rules and the modification process is lengthy.  However, the relief can be tremendous. 

http://online.wsj.com/article/SB123144562914865337.html

Jim Cramer from CNBC commented on the proposed changes here: 

http://www.cnbc.com/id/28562958

 

 


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