New legislation aimed at the major roadblock to helping distressed homeowners passed the House March 5, when the Helping Families Save Their Homes Act of 2009 was approved via a vote of 234-191. If it gets Senate approval, bankruptcy judges will gain the power to modify terms of loans for some homeowners–an ability already in place for commercial property and nonessentials such as vacation homes, yachts and snowmobiles.

Support for the measure in the Senate is unknown, with various news sources citing low regard among Senate GOP leaders as well as a few Democrats, while others indicate the necessary votes may already be lined up. For example, an AP story on the NPR Web site says of the bill, “It faces a tough road in the Senate, where Republicans and some Democrats oppose the idea.”

But a Marketwatch account, while acknowledging that Senate support “is unclear,” also reports that “Senate Majority leader Harry Reid, D-Nevada, said he believes he has the votes to confirm passage. The measure will likely require the support of a few GOP Senators. A spokeswoman for Sen. Mel Martinez, R-Fla., said he is considering the legislation. Like many other states, Florida has an unusually large number of troubled homeowners and foreclosures.” Read the rest of this entry »