Fight Building over judges redoing mortgages

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Most congressional Democrats say the quickest way to save homeowners is to let them declare bankruptcy and allow judges to dictate new mortgage terms

From Salon.com

A bill to give judges authority to alter loan terms for primary residences may be the quickest way to arrest the housing market's collapse. Most Democrats in the House and Senate support that plan. President Barack Obama told Democratic leaders he also backs it, according to a Senate aide who was not authorized to be quoted by name.

But 10 groups representing the lending industry and other businesses are fighting back fiercely.

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Tags: mortgage, bankruptcy, democrats, obama