I’m giddy at the prospect of modifying mortgages in Chapter 13 as an alternative to Truth in Lending suits.  While I’m finding lots of violations, and they give me levers against the lenders,  the TILA statute contemplates that the wronged borrower return the difference between their damages and the original loan to the lender.

In this credit market, I am fearful that many borrowers, particularly the older and the lower income homeowners, won’t be able to get a loan to tender back to the lender.

With the prospect of  mortgage modification, I expect that in a number of my cases, modification of the existing loan, especially if we can reduce principal to the current value of the property, will produce a better result for the client and one that does not require a new loan.

Pretty heady stuff.