Wow, what a dirty word and one congress is considering changing to assist homeowners. Congress is now considering such a change to our bankruptcy laws. In short, what it would do is allow judges to re-do your mortgage terms. AHGGGG. This does not sound  good to me. While it may assist some homeowners in keeping their home, it does nothing to aleivate the problem of having a bankruptcy on you record forever. Anyone opting for this solution should be made fully aware of the future problems this would create with their credit. A bankruptcy stays on your report FOREVER and would be a real hardship for any young couple just starting out. The higher interest rates they will have to pay for the rest of their life could be worse than biting the bullet and letting a foreclosure go through. A foreclosure only lives with you for a maximum of 7 years and can be fairly easily overcome in a couple of years simply by paying on time. Think hard before taking this way out as nice as it sounds, it is like herpes, you can never get rid of it.