Efforts continue to attempt to stem the tide of expected foreclosures in the coming year and a half to two years. Many say that such programs as Project Lifeline will be largely insufficient.

One of the efforts to kick foreclosure prevention into high gear is a bill that gives bankruptcy judges the ability to force changes to mortgage loan terms. It is scheduled for a vote in the Senate tomorrow.

While many consumer advocate groups applaud the move, insisting that it will allow bankruptcy judges the same powers they have to modify car and credit card loans, others feel that the move would only increase the costs of home mortgage loans, reports Inman News:

Allowing judges to "cram down" loan
modifications over the objections of lenders could raise interest rates
on mortgage loans by 1.5 percent or more, industry groups fighting the
proposed changes to the bankruptcy code say.

What do you think? Would including mortgage loan terms in bankruptcy proceedings help or hurt the economy?