Consumers, Credit, and Complications

SPRINGFIELD - U.S. Sen. Dick Durbin, D-Ill., is promoting a plan to bail out some of the estimated 2.2 million Americans who may be on the verge of losing their homes to foreclosure.Durbin's proposal would open a legal window as a last resort for families unable to pay their monthly mortgage bills. The legislation would allow those facing foreclosure to go to bankruptcy court, where a judge and lender would negotiate an affordable monthly payment.Durbin hopes the measure will not only curb the number of foreclosures occurring nationwide, but also help the overall health of the nation's economy."Those whose home value will be affected are 44 million. That represents one-third of all private homeowners in America," Durbin said at an event Friday in Springfield. "This is not a mortgage crisis; this is an economic crisis."Durbin's proposal would add mortgages to the list of personal debts that can be restructured by filing for bankruptcy under federal statutes. read more