The bankruptcy 'tweak' could save 600000 homes

Reference:

Sahadi, J. (2007, October 2). The Bankruptcy ‘Tweak’ could save 600000 homes, CNNMONEY.com. Retrieved from: http://money.cnn.com/2007/10/01/real_estate/subprime_bankruptcy_change/index.htm.

Summary:

In the article “Bankruptcy ‘Tweak’ could save 600000 homes” by J. SAhadi, the author said the lawyer cannot pay less than before and the person’s house but they can reduce the principal to much the home’s current market value as well as reduce the loans interest rate. But if change pros and cons will happen, some people will think this is good news for people, but it can fix some people’s problem and other ways this will let them not think this will be the less of two evils, because the homeowners would be able to keep their home. So at the end of if they know this can be adjusted without consent of the lender, it will change their perceived risk and change their valuation. So this maybe can change some of the rules in the loan.

Reaction:

If you want to buy a house or a car or something that requires you to spend a lot of money. A lot of people will go to bank and getting a loan will be ok!” Yes, this is right, of the bank lend you money, this is good for world developing; maybe you can win in your business. But another way is if you have some problem that make you lose what you have to do, what about that money from the bank? This is a problem, and nobody can know in the future what will happen. So before you invest, you need to make sure the investment environment is good, and you need a good market research and market analysis. Because this is very important, this is a preparatory stage. This is one of the ways to let you avoid losing your loan in business, then filing bankruptcy. The other way is sometimes investors need calm; they don’t want just some people to get high interest in some trades, and let you lose your mind and follow; maybe this is just a short time when you can receive money before the market falls. There is an example; oranges have high vitamins, so some of the data is very famous in the market; a lot of orchard works change their mind, and most of them plant orange trees. So that year, there are a lot of oranges in the market, but there is a problem which is drugs on the market. Finally, some orchard workers have bankruptcy. This is a good example to tell the investors you need to be careful, don’t waste your money or time, and maybe your family, in the market without market research.