Pushing a Fast-Fix May Leave Home Owners Out in the Cold

Many expect Legislation to be passed this week to address the crisis on Wall Street. While the Banks and Brokers have had years to prepare for this inevitable consequence of irresponsible lending, and non-existant oversight of the Banking Industry, the general public ( i.e. home owners ) are not so well prepared.

Treasury Secretary Henry Paulson said, “The credit markets are still very fragile right now and frozen, we need to deal with this and deal with it quickly…more.”

Democrats would like to modify the plan, changing the bankruptcy laws to allow a Judge authority in home owner for-closure cases. They believe that protecting the assets of individuals would force Banks to require better credit for loan applications, as well as larger down-payments, stating that the effect would strengthen the Banking Industry and the market in general. The question is whether Democrats will get the 60% support required to force the modifications.

And of course the President has to sign the Bill…quickly….hopefully…