24 Feb 2009

Helping Families Save Their Homes Act of 2009 (HR1106)

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According to an article published in the Congressional Quarterly on February 23, 2009, the Helping Families Save Their Homes Act of 2009 may soon be on the floor of the House or Representatives. It was written that Speaker Nancy Pelosi intends to introduce HR 1106 which, among other things, would allow the bankruptcy court to re-write the terms of a mortgage secured by a debtor’s principal residence. It appears that the new legislation is similar to that of HR 200 and SR 61, but incorporates additional modifications recommended by the House Judiciary Committee. Significantly, HR 1106 still has the “magic language” of HR 200 and SR 61 which allows the bankruptcy court to modify the interest rate and term of a mortgage loan.

The language of HR 1106 can be found here: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.1106: