Written by Craig D. Robins, Esq.
I previously wrote a number of posts about proposed legislation to “cram-down” or “strip-down” mortgages in Chapter 13 bankruptcy cases. (Will the Senate Approve Cram-Down Legislation to Enable Mortgage Modification in Chapter 13 Bankruptcy Cases? ).
If passed, this new law will enable bankruptcy court judges to modify mortgages of Chapter 13 debtors and reduce monthly mortgage payments.
Unfortunately, the mortgage cram-down legislation is faltering because there may not be enough votes for the pending bills to pass. This is the result of fierce Republican opposition and possibly even some opposition from moderate Democrats.
Senate Majority Leader Harry Reid (D-Nev.) has said previously that he is prepared to drop the cram-down language provision from a broader housing bill if the votes are not there.