An anti-foreclosure bill that would have helped individuals filing bankruptcy in order to avoid foreclosure was defeated today by the Senate. Most major news sources including this story from Yahoo Finance via the Associated Press stated there was strong lobbying by banks to stop the bill.

Whether this was a good decision for homeowners or not will be debated in the coming months or until the housing crisis goes away and our economy rebounds. Don’t forget that you and I whether facing foreclosure or not are currently invested in said lobbying banks through TARP and the stimulus plan. The banks and there toxic assets made up of bad mortgage loans is the reason we’re in this mess and whether we like it or not their word is going to make a big difference in what the government does. This is not about Obama, you, or me, it’s about getting the banks back on their feet so that they can start lending at greater and greater rates. This is a decision that was hinged on the entire country not just the 8 Million facing foreclosure.

This is obviously bad news for some homeowners facing foreclosure. Homeowners will have to reconsider their options and either walk away, short-sell, or make a solid attempt at modifying their home loans. At the same time we want to say that bankruptcy is not the end of the world. In fact in some cases it’s encouraged by Trinity’s Loss Mitigation Consultants. Yes your credit will be ruined but your credit was not created overnight and now you have a chance to rebuild your financial position into one that will be stronger than it ever was. This is a big decision, we know, and a difficult one, the sooner you face it the sooner you’ll have a chance to rebuild your future.