Obviously, everyone saw this coming after the election, but Illinois Democrat Senator Richard Durbin has not even waited for the run-off elections to be decided or a new Congress seated in January. He introduced a bill that would allow Bankruptcy Judges to modify home mortgages.
From Reuters –
The bill was introduced in what is expected to be an abbreviated lame-duck session of Congress, called to address a possible auto industry bailout and economic stimulus measures. A new Congress will be seated in January. The Senate in April voted against a similar mortgage bankruptcy proposal, also supported by Durbin. His bill this time around would also require certain federal agencies to restructure mortgage loans involved in homeowner assistance programs already approved by Congress.