Helping Families Save Their Homes in Bankruptcy Act of 2009

Bill 111 HR 200, also known as the Helping Families Save Their Homes in Bankruptcy Act of 2009, was introduced in the US Congress with the aim of providing relief to homeowners facing foreclosure during the financial crisis of 2008. The bill sought to amend the Bankruptcy Code to allow bankruptcy judges to modify the terms of a mortgage on a primary residence in order to prevent foreclosure.

Specifically, the bill proposed allowing bankruptcy judges to reduce the principal amount of a mortgage to the current market value of the home, lower the interest rate, and extend the repayment period. This would make it easier for struggling homeowners to keep their homes and avoid foreclosure.

The bill was met with both support and opposition. Supporters argued that it was necessary to help families stay in their homes and stabilize the housing market. Opponents, on the other hand, raised concerns about the potential impact on lenders and the overall mortgage industry. Ultimately, the Helping Families Save Their Homes in Bankruptcy Act of 2009 did not pass and did not become law. However, it sparked important discussions about how to address the housing crisis and provide relief to homeowners facing foreclosure.