Tuesday, December 9, 2008

Bankruptcy Mortgage Bill to be Reintroduced Again in January


Senator Richard Durbin (D-Ill.) held a press conference today where he announced that he will reintroduce on the first day of the new 111th Congress the "Helping Families Save Their Homes in Bankruptcy" legislation. This legislation would amend the bankruptcy laws to allow modification of mortgages secured only by a "principal residence" to assist struggling mortgage borrowers. It is also reported that he will seek to have this legislation included in the economic stimulus package that will be considered in the first weeks of the new Congress.

It is also reported that House Financial Services Committee Chairman Barney Frank told participants at a Office of Thrift Supervision conference on Monday that he expects lawmakers may revive efforts to change bankruptcy law early next year if foreclosure rates are not on the decline.
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