US Dollar Tries to Recover, But Upcoming Housing and Sentiment Data �

Several banks issued statements this week saying they were temporarily suspending withdrawals from open home equity lines out of concern that borrowers could owe more than the house is worth.Historic declines in property values have stripped many local homeowners of their safety nets as lenders freeze lines of credit ---- even on people who are current on their mortgage payments.

It's an emotional hardship, said Patti Lien of Menifee. We kept our credit good. We've done everything right, and this is what we get because Countrywide made all these crappy loans.

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US announces plan to delay foreclosures

Kim and Robert Canfield filed for bankruptcy last summer to save their home from foreclosure. The Saugus couple makes about $5,500 a month after taxes. Their monthly mortgage payment had climbed above $3,000. The house has been in Robert's family since the 1920s, but they could no longer afford the payments.

Bankruptcy courts are empowered to reduce debts to manageable proportions for people who file under Chapter 13 of the US Bankruptcy Code. A rush of people similarly desperate to keep their homes contributed to a 57 percent increase in Chapter 13 filings in Massachusetts for the fiscal year that ended in September.

But as the Canfields learned, there is one debt the courts can't touch: The mortgage loan on the home where you live. Bankruptcy courts are better equipped to save your car than to save your home. read more