Court-supervised Loan Modifications Pass the House (H.R. 1106)!

Last night, by a vote of 234 – 191, the House of Representatives passed H.R. 1106 largely along partly lines.  Click here to see how your Rep voted.

H.R. 1106 will allow judges to modify mortgages for homeowners forced to file bankruptcy. Consumer advocates have been pushing for this change since the housing market began to unravel, and getting the bill through the House is a great first step toward preventing up to a million foreclosures without costing taxpayers a penny.

Of course, it is only a first step.  Companion legislation still has to get through the Senate, where it may be watered down. Fortunately the Administration supports court-supervised loan modifications, and President Obama is expected to sign what Congress eventually sends to the White House.

See this previous post for more info about court-supervised loan modifications, and this post on Firedog Lake about how the bill has been changed as it worked its way through the House.