Bankruptcy Cramdown compromise coming soon

[MrPerson]

http://thehill.com/leading-the-news/cramdown-compromise-sought-by-tuesday-2009-04-17.html

A draft compromise proposal indicates that borrowers who have been offered modifications consistent with the president's Homeowner Affordability and Stability Plan or with a congressional program on refinancings would not be able to turn to courts to modify their mortgage. Under the proposal, judges would be able to reduce mortgage principal to a "fair market rate" and limit interest payments to a conventional rate plus a "reasonable" risk premium. Only loans made before 2009 and less than $729,750 would be eligible. The bill would sunset in 2014.