Congress Should Amend Bankruptcy Code to Allow for Modification of Residential Mortgages According to Latest ABI Poll
Congress Should Amend Bankruptcy Code to Allow for Modification of Residential Mortgages According to Latest ABI Poll
Contact:
(703) 739-0800
[email protected]
CONGRESS SHOULD AMEND BANKRUPTCY CODE TO ALLOW FOR MODIFICATION
OF RESIDENTIAL MORTGAGES, ACCORDING TO LATEST
February 22, 2008, Alexandria, Va. —A majority of respondents (66 percent) to
Thirty percent of respondents, however, disagreed that Congress should amend chapter 13 of the Bankruptcy Code to allow for the modification of residential mortgages. Twenty-two percent “strongly disagreed” and 8 percent “somewhat disagreed” that Congress should amend chapter 13 to allow the modification of residential mortgage terms in bankruptcy. One percent of the respondents did not know or had no opinion on the issue.
In an attempt to stem the tide of predicted foreclosures due to the subprime mortgage crisis, Congress is considering legislation to amend chapter 13 of the Bankruptcy Code to allow bankruptcy judges to modify the terms of a primary residential mortgage for homeowners in distress. The housing stimulus package (S. 2636), introduced by Sen. Harry Reid (D-Nev.), includes the mortgage modification language among its provisions to aid distressed homeowners. The Senate is scheduled to act on S. 2636 next week.
###