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foreclosures: House of Representatives Fails to Pass Loan Modification Bankruptcy Legislation - 12/12/09 02:23 AM
Although the House of Representatives passed legislation earlier in 2009 to allow Bankruptcy Judges to modify loans secured only by a debtor's principal residence, 50 Democrats reversed themselves and rejected similar legislation recently introduced into the House. When questioned, some stated with passage of sweeping banking reform earlier in the day they could not vote against the banking industry twice in one day. This vote was taken notwithstanding Congressional reports that evidence the banking industry is not modifying loans to preserve home ownership. And, when there is closer scrutiny of loans modified, research points to the inevitable default on such
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