Bankruptcy

Mortgage Modification Legislation Update: Citigroup Supports the Bill

By Bill McLeod, Esq.

Big news out of Washington, from the Washington Post:

Financial giant Citigroup Inc has agreed to support a controversial rewrite of U.S. bankruptcy law aimed at helping troubled mortgage borrowers, three Democratic senators said on Thursday.

Senators Richard Durbin of Illinois, Charles Schumer of New York and Christopher Dodd of Connecticut said the legal reform would help "millions of families save their homes."

Citigroup has agreed to support, under certain conditions, a rewrite of bankruptcy law. Under the change, known as "cramdown," bankruptcy courts could alter the terms of mortgages, subject to certain conditions, the senators said.

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Full post as published by McLeod Law Offices on January 08, 2009 (boomark / email).