One to Watch: Mortgage Cram-Downs Clear Committee
The House Judiciary Committee has approved H.R. 200, entitled the "Helping Families Save Their Homes in Bankruptcy Act of 2009." Judiciary Committee Chairman John Conyers issued a statement after the measure was approved.
The measure would amend bankruptcy laws for Chapter 13 debtors, excluding some mortgages from debt calculations, and allowing judge-imposed modifications to mortgages. Specifically, the measure would grant a judge the ability to modify the terms of a mortgage for a homeowner in chapter 13 bankruptcy, by: (1) reducing a claim to equal the value of the debtor's interest in the residence securing such claim, and any adjustments to a related adjustable rate of interest; (2) waiving early repayment or prepayment penalties; and (3) extending the repayment period.
