Bill Focuses On Foreclosures

By Tom McIntyre

July 15, 2010 Updated Dec 5, 2007 at 6:17 PM CDT

Bankruptcy judges would be allowed to come to the aid of homeowners facing foreclosure under a proposal pushed by Illinois Senator Dick Durbin.

Durbin put his bill in the spotlight today at a Senate Judiciary Committee hearing.

Under his plan, a bankruptcy judge could change the mortgage of a primary residence, including lowering an adjustable interest rate to a lower, fixed rate.

Already, the judges can do that with loans for cars and a host of other debts.

Durbin estimates his bill could help an estimated 600,000 families in the U.S. at risk of losing their homes because of rising adjustable mortgage rates

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