That was the title of the hearing held earlier today before the Senate Judiciary Subcommittee on Administrative Oversight and the Courts. Due to foreclosure rates that continue to climb across the country, Senate Democrats are taking a second look at a failed proposal to allow the modification, or “cram down” on first mortgages in homes that are upside down.
Senator Dick Durbin (D-Ill.) called once again on the Senate to adopt the “cram down” proposal he has been trying to get passed since 2007. The measure, which would permit home owners to reduce the balance on their mortgage down to the fair market value of the home, was defeated in the Spring of 2008 and again early in 2009. Such a provision would be extremely attractive in states such as Arizona that have many home owners seeing a 50% decline in the value of their homes.