House Bill Would Allow Courts To Modify Mortgages

Law360, New York (September 24, 2007, 12:00 AM EDT) -- In response to the growing crisis in the subprime mortgage market, a bill introduced in Congress on Thursday aims to prevent homeowners from losing their homes in bankruptcy by allowing courts to modify mortgages.

The legislation was proposed by Rep. Brad Miller (D-N.C.), a member of the House Financial Services Committee, and Rep. Linda Sanchez (D-Calif.), a judiciary subcommittee chairwoman. It seeks to amend U.S. bankruptcy law and includes a provision that would allow bankruptcy courts to modify a home mortgage in the same way mortgages...
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