Toxic Mortgage Syndrome

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Many Homeowners Whose Mortgage Exceeds the Value of their House Desperately Need Loan Modification through the Bankruptcy Courts - and Must Get it.

Without a doubt, the first thing President Obama has to do is help the people who are getting tossed out of their houses left and right due to foreclosure… and he needs to act now

As a freshly inaugurated Barak Obama takes the reins, everyone wants to know how the Chief Executive plans to turn around the ailing U.S. economy. What is at the top of President Obama's list and when will he act? "Without a doubt, the first thing President Obama has to do is help the people who are getting tossed out of their houses left and right due to foreclosure… and he needs to act now," says Reed Allmand, partner in Allmand & Lee, based in Dallas, Texas.

Allmand explains, "A broken economy will never be fixed as long as Henry and Harriett Homeowner have to pay two or three times the mortgage payment they can actually afford. Unfortunately, there are still millions of Americans with subprime mortgages out there… and the payments are forcing them out in the streets."

Indeed they are. According to CNNmoney.com, foreclosures have shot up more than 81% in 2008, and a whopping 225% compared with 2006. And even with the moratoria on foreclosures by Freddie Mac and Fannie May during Nov. 26, 2008 through January 31, 2009, foreclosures still climbed 17% in December over November.

In 2008, there were 3.1 million foreclosure filings issued, and 861,664 families actually lost their homes.

Allmand is convinced the Bankruptcy judges must be allowed to modify mortgages through the courts. "What we have here is an epidemic. The only way out of this is by keeping people in their homes and restructuring a mortgage payment they can live with."

W. Reed Allmand is a Board Certified Consumer Bankruptcy Attorney and partner in the law firm Allmand & Lee. He has been practicing for 7 years and has handled more than 3,000 bankruptcy filings. He is also author of the book, "The Truth about Bankruptcy." For the past several months, Allmand & Lee has filed over 200 bankruptcies per month. Allmand & Lee has law offices in Dallas and Hurst. To speak with Mr. Allmand or to schedule an interview, please call (214) 265-0123 or you can visit his site at http://www.allmandandlee.com

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Weldon Allmand
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