Foreclosuere Bill Fails in Senate

The U-S Senate refused to go along with an Obama administration plan to allow judges to modify mortgages.

The so-called cramdown provision would have allowed judges to reduce the mortgages principal amount.

The idea was to put pressure on loan servicers to modify loans before borrowers had to file for bankruptcy.

Financial lobbyists argued it would add instability to the market and cause a rise in interest rates.

The bill was defeated by a 51 to 45 vote.

The defeat comes on the same day a new report says foreclosure proceedings were started against 290 thousand homeowners in March.

That is the highest monthly number since they started keeping the record in mid 2007.