According to Bloomberg, the City of Harrisburg's bankruptcy case was thrown out by a bankruptcy court that ruled the city council was not authorized to file the petition for Pennsylvania's capital.
The National Association of Consumer Bankruptcy Attorneys (NACBA) has developed a Principal Pay Down Plan, which would provide immediate relief for qualified homeowners who find themselves underwater on their mortgages. Economists and other experts all agree that housing must stabilize before we have a full blown economic recovery. The Principal Pay Down plan proposes to reduce the interest rate on mortgages to 0% for 5 years, monthly payments would be lowered and every dollar applied to the principal. This Plan provides multiple benefits. It would help families trying to save their homes, stabilize communities, and help prop up the ever declining housing market.
The Commerce Department announced earlier today that sales in August 2011 of new homes fell to a six-month low, as reported by the Associated Press.
The report released by the Commerce Department showed new-home sales fell 2.3 percent, which is approximately half the amount of sales necessary to uphold a healthy housing market. While only representing less than twenty percent of the overall home sales, new home sales do have a large impact on the economy, as each new home built is responsible for creating jobs as well as generating significant tax revenue (approximately $90,000.00 according to the National Association of Home Builders).
The first week of the new Consumer Finance Protection Bureau is off to a difficult start. The new agency, part of the initiatives of the Dodd Frank bill, is the first time there has been a regulator whose sole function is consumer protection. It will oversee credit cards, mortgages, payday loans, etc. There is a concerted effort, however, to water the agency down and efforts to appoint a director are being frustrated until changes are made. It looks like we will have this new agency, but its powers will not be what was anticipated in the Dodd Frank Bill. Both banks and advocates want simplified disclosures, marketing rules, and uniform regulations . Both sides want changes, but the industry (especially the smaller banks) are concerned about the costs.
