Senate Homeowner Aid Moves Big Step Closer

Citi drops opposition to Senate proposal
By Matt Cantor,  Newser User
Posted Jan 9, 2009 9:02 AM CST
A boarded up vacant home is for sale on the near south side of Indianapolis, Wednesday, Oct. 22, 2008.    (AP Photo/Michael Conroy)
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(Newser) – A Senate plan to help struggling homeowners keep their houses moved closer to fruition yesterday as Citigroup ended its opposition to the bill, the Wall Street Journal reports. The measure would allow so-called “cramdowns,” in which judges in Chapter 13 bankruptcy cases could set lower principal and interest rates, or extend the terms of loans. Citi has changed its stance after receiving $45 billion in government aid in the fall.

“This is the breakthrough we've been waiting for," said Illinois Democrat Dick Durbin. "To have a major financial institution support this legislation will create an incentive for others to come our way.”