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Plan to Cut Foreclosure Rate Clears Key Hurdle

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Legislation advanced by Senator Dick Durbin of Illinois would allow bankruptcy judges to lower principal and interest rates on mortgages and extend the loan period. Of 10 million homeowners who are having trouble making payments new bankruptcy law changes would help 800,000 troubled borrowers keep their homes, according to Mark Zandi, chief economst at Moody's Economy.com. With the government's loans of $45 billion to Citigroup it has more leverage on key banks in the banking industry. As a result Citigroup which had earlier opposed the change in bankruptcy laws to make this possible has now changed its stance. Vikram Pandit Citi's CEO stated yesterday that "we support its swift passage."

U.S. Senator Durbin and legislation to change bankruptcy law to help homeowners facing foreclosure in 2009

01/09/2009

Grouped Articles

Plan to Cut Foreclosure Rate Clears Key Hurdle

Wall Street Journal 01/09/2009

Trying to Help Financially Troubled Homeowners

New York Times 02/06/2009

Bankrupt Housing Policy

New York Times 05/19/2014


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