Legislative Background
Recent Action on Mortgage Relief
Controversial changes in the bankruptcy code aimed at reducing foreclosures are moving through the Congress but still face a rough road to passage. House Action On January 6, 2009, House Judiciary Committee Chair John Conyers (MI-D) introduced H.R. 200, the Helping Families Save Their Homes in Bankruptcy Act. Under the bill, bankruptcy judges would be able to write down the principal and interest rate of eligible loans for people whose mortgages have outpaced the value of their homes. They could also extend the life of such loans for up to 40 years. (Under current law, bankruptcy judges are prohibited from…
