"The law should give American families facing foreclosure the opportunity to negotiate a workout on their mortgages. This bill may help them reach a degree of financial stability — even when the market cannot," Durbin said. "Small changes to an outdated bankruptcy code could help over 600,000 at risk families keep their homes, while affordably paying back their obligations. We should be giving families every reasonable tool to ensure they can keep a roof over their heads."

I love the blog that Sheryl writes. Sheryl is a lawyer in South Carolina. She recently posted about the proposed changes to the US Bankruptcy laws.

There is a bill winding its way through the US Congress that will have far reaching ramifications on foreclosures and short sales.

These bankruptcy changes may affect short sales. If you are filing for bankruptcy now, you cannot get the court to reduce the amounts that you owe your home loan companies.

Under the proposed bill, this would change. The bankruptcy judge in a mortgage short sale bankruptcy situation, would be able to reduce the balances on your home loan.

Tough for the lenders.

And that's the issue. If lenders get wind of this bill and it passes into law, the home loan industry is doomed as we know it. Because now the loans that the lenders are making to the homeowners would be subject to huge principal reductions. And that means lenders will be much more choosy as to which loans they buy.

That is very bad news for the future of the housing market.

And if you are intrested in learning more about short sales, you really need to watch my informative video that explains inside information about how to do a short sale, how to keep good credit, and you will learn about cutting credit card debt and doing short sales while keeping your credit score up and avoiding bankruptcy.

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