The Helping Families Save Their Homes Act
President Barack Obama has come up with new improvements on the previous mortgage plan called to help people cope with mortgage costs in current crisis. “This bill removes those hurdles, getting folks into sustainable and affordable mortgages and, more importantly, keeping them in their homes.”
On May 20, 2009, the new mortgage bill was signed into law by President Barack Obama. The purpose of the act is to allow bankruptcy judges to modify mortgages on primary residences and encourage lenders to spare homeowners from foreclosure and take action on predatory lending practices. The law expands an existing $300 billion program that encourages lenders to adjust a mortgage if the homeowner agrees to pay an insurance premium. The program is set to expire in 2011.