Congress Prepared to Vote on Mortgage Modification through Bankruptcy

The House of Representatives is expected to pass legislation which would modify current bankruptcy law and allow bankruptcy judges to rewrite residential mortgage loans in chapter 13 bankruptcy!  I've posted on this before and have been following the progress of this measure for more than two years.  President Obama supports the measure. The legislation would only apply to existing mortgages.  Proponents hope that such a limitation addresses concerns of opponents who fear such a change would scare lenders away from the mortgage market.  The legislation also requires homeowners who benefit from the legislation to share a scaled portion of profits from the sale of the house if the house is sold within four years of the bankruptcy.  If the measure passes, as expected, the next stop would be the Senate.  The Senate was where the legislation died during former President Bush's term, but there are more Democrats in the Senate now and President Obama supports the legislation. The House of Representatives is expected to pass legislation which would modify current bankruptcy law and allow bankruptcy judges to rewrite residential mortgage loans in chapter 13 bankruptcy!  I've posted on this before and have been following the progress of this measure for more than two years.  President Obama supports the measure. The legislation would only apply to existing mortgages.  Proponents hope that such a limitation addresses concerns of opponents who fear such a change would scare lenders away from the mortgage market.  The legislation also requires homeowners who benefit from the legislation to share a scaled portion of profits from the sale of the house if the house is sold within four years of the bankruptcy.  If the measure passes, as expected, the next stop would be the Senate.  The Senate was where the legislation died during former President Bush's term, but there are more Democrats in the Senate now and President Obama supports the legislation.