Comments on: Cram-Down Bill Moving Forward http://www.seattledebtlaw.com/blog/2009/01/06/cram-down-bill-moving-forward/ Bankruptcy, foreclosure, and debt help for Seattle-area consumers Tue, 27 Sep 2011 15:59:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: John D. Behle http://www.seattledebtlaw.com/blog/2009/01/06/cram-down-bill-moving-forward/comment-page-1/#comment-475 John D. Behle Sat, 07 Mar 2009 18:46:51 +0000 http://www.seattledebtlaw.com/blog/?p=93#comment-475 If this bill does not have an exemption for private seller carry back mortgages, it has the potential to destroy tens of thousands of people. Retired couples who sold a property with seller financing can end up with a large portion of their net worth acquired over a lifetime tied up in private mortgages. Other small investors have purchased private mortgages as an investment. This is primarily a private market with small investors. Very few financial institutions invest in or hold these mortgages. Small investors and retired couples will be devastated through no fault of their own. Financial institutions may be able to weather these type of losses and of course, the government offers them bailout funds in addition. Private individuals cannot and should not be destroyed by this legislation. If this bill does not have an exemption for private seller carry back mortgages, it has the potential to destroy tens of thousands of people. Retired couples who sold a property with seller financing can end up with a large portion of their net worth acquired over a lifetime tied up in private mortgages.

Other small investors have purchased private mortgages as an investment. This is primarily a private market with small investors. Very few financial institutions invest in or hold these mortgages. Small investors and retired couples will be devastated through no fault of their own. Financial institutions may be able to weather these type of losses and of course, the government offers them bailout funds in addition. Private individuals cannot and should not be destroyed by this legislation.

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