Topic: Past Foreclosure Crisis Provides Current Housing Market Solutions
Two researchers of the Federal Reserve Bank of Cleveland believe it possible to end the current rising of foreclosures by applying laws from the 1980s.
During that decade, farm foreclosures were steadily getting worse, and in 1986, the establishment of Chapter 12 of the Bankruptcy Code allowed for a provision for courts to “courts to modify the terms of farm mortgages and reduce mortgage balances in cases where property values had declined.”