There was a 45 to 51 vote in the senate against a bill that was geared to help homeowners facing foreclosure. The idea was to allow homeowners to claim bankruptcy in order to save their homes. However, banks were not happy about this and had a large say in swaying representatives opinion. Many others felt that the banks would spike the interest rates and make other problems occur such as less spending, fewer loans, and more foreclosures as adjustable loans skyrocket out of control.

President Barack Obama backed this bill and stated that this bill was very important in order to save the economy. The bill had to have 60 votes in order to pass. With 15 fewer votes than needed it wasn’t going to move forward. Now the bill has to go back and become adjusted to meet the needs and interests of those who voted against it. The question is why they voted against it other than the fear that the banks would raise the interest rates and become angry that they were not making as much money.

For a homeowner to claim bankruptcy it isn’t the best decision. The bankruptcy will remain on their credit report for 10 years and it will make it impossible for the borrower to get any other loans. The only thing they would benefit out of the bankruptcy would be keeping their homes.