by Calculated Risk on 1/06/2009 09:16:00 AM

From Reuters: Lawmakers set new mortgage bankruptcy bill

Legislation designed to stem foreclosures by allowing bankruptcy judges to erase some mortgage debt will be introduced by Congressional Democrats on Tuesday, and hopes are high that it will pass after a similar plan failed last year.
...
The legislation would change allow bankruptcy judges to modify home loans in the same way that they currently may modify other unsettled obligations, such as credit card debt.

For a discussion of the cram-down issues, see Tanta's:

Just Say Yes To Cram Downs Oct, 2007

Here are a couple more posts from Tanta on cram-downs:

House Considers Cram Downs Sept, 2007

MBA and Cram-Downs Feb, 2008