House Judiciary Amends Bankruptcy Act to Include âClawbackâ

HR 200, the House version of the "Helping Families Save Homes in Bankruptcy Act of 2009," as reported in Northern California Mortgage Mods, was amended in committee to include a law back amendment. This allows mortgage companies, whose loans are modified by a bankruptcy judge, to share in the appreciation of a house that is later sold by the home owner.The benefit to the lender will go from 80% of any appreciation in the house's value during the first year after modification to 20% in the 4th

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