Congress Takes on Modifying Mortgages in Bankruptcy

We've been highlighting the issue for a while (most recently in our Tuesday posting) that Congress would like to have bankruptcy judges be able to modify mortgages in court.

Here's why you care: On the one hand it would give an avenue for those underwater to make their case and move on. On the the hand, it is going to cost those that lend and/or hold those mortgages a bundle of money - which will be passed on to you the next time you borrow. None the less, the House is taking it up, and the Senate is next. We figure you've seen all the front page headlines on the President Obama's budget so we thought we'd highlight the mortgage story instead since you may have missed it. The Los Angeles Times' Jim Puzzanghera has a well written story laying out all sides, and the costs (and potential costs). Give it a read and you'll be ahead of the curve.