The House Judiciary Committee has approved the Helping Families Save Their Homes in Bankruptcy Act of 2009 (H.R.200) by a vote of 21 to 15. Introduced by Sen. Richard Durbin, D-Ill., H.R.200 delegates authority to bankruptcy judges to modify first mortgages. The committee adopted an amendment that requires homeowners to share any profit they receive from selling a home with lenders. The committee opted not to include a proposed amendment that would limit bankruptcy cramdowns to subprime loans.
The bill now goes to the House for a vote. Committee Chairman John Conyers Jr. says he believes the bill represents "one of the most tangible steps we can take to limit the fallout from the real estate depression sweeping the nation."
"For families in dire distress, this is a much-needed reform," he says. "And considering the realistic alternatives, it is fair – to all concerned. â�¦ While bankruptcy reform may not provide all of the answers to this crisis, surely it provides a commonsense and practical approach to helping stop the spiral of home
foreclosures – which are not helping anyone."
SOURCE: House Judiciary Committee