Bankruptcy

Sad Day for Many Homeowners: Senate Slaps Down Anti-Foreclosure Bill

By meaghano

The Senate voted 45-51 against Dick Durbin’s anti-foreclosure bill. Twelve democrats opposed the bill.

We were hoping the Senate would help deal with the massive foreclosure epidemic and pass the bill, which would have allowed bankruptcy judges to adjust the terms of mortgages of people who were facing foreclosure, among other things.

Obama made public statements saying the bill was an important aspect to helping the economy; however, it’s been speculated that he didn’t throw in 100% support because banks  opposed to the bill’s passage.

Here’s a quote from the Associated Press article posted on the Kansas City Star on Obama’s support or lack thereof:

“Obama long has backed the proposal to give debt-ridden individuals the option of turning to bankruptcy to save their homes. He cited that support last fall as he privately lobbied skeptical Democrats to back the $700 billion Wall Street bailout. And once he was president, he had promised, he would push for its passage.”

Full post as published by The Bankruptcy Blog on April 30, 2009 (boomark / email).