WASHINGTON — A plan to give debt-strapped homeowners a chance to win lower mortgage payments through bankruptcy courts headed for House approval today as a new report revealed that foreclosures and past-due home loans hit a record 5.4 million last year.

The legislation, part of President Barack Obama's housing rescue plan, is facing a much tougher road in the Senate from the same industry opposition and reservations from moderate Democrats that nearly derailed the measure in the House.

The House was set today to pass the bill, and the Senate could consider it within weeks.

The legislation would give bankruptcy judges — who now can modify loans for cars and student loans but not for primary residences — new power to reduce the interest rate and principle on a home mortgage.

Supporters regard the threat of a mortgage modification in bankruptcy as a crucial tool to prod banks to negotiate with homeowners for more affordable terms. Critics argue the measure will create a flood of bankruptcy filings that ultimately will drive up mortgage rates and further destabilize the battered housing market.

A survey by the Mortgage Bankers Association released today found that nearly 12 percent of homeowners were in foreclosure or behind on their payments at the end of 2008.

The House bill is the product of a compromise between dueling Democratic factions. A group of moderates broke with liberal backers last week and refused to support the measure unless it included several changes the banking lobby had sought.