President Obama unveiled a plan to address the foreclosure crisis on Feb. 18, 2009, centered on a $75 billion fund to help people refinance subprime or underwater mortgages.

As part of his announcement, Obama said he would continue to seek changes to bankruptcy laws.

"My administration will continue to support reforming our bankruptcy rules so that we allow judges to reduce home mortgages on primary residences to their fair market value — as long as borrowers pay their debts under court-ordered plans," Obama said in a speech in Mesa, Ariz. "I just want everybody to understand, that's the rule for investors who own two, three, and four homes.  So it should be the rule for folks who just own one home, as an alternative to foreclosure."

Such legislation has been introduced in Congress. Rep. Barney Frank, D-Mass., who chairs the House Financial Services Committee, said the House would soon take up the legislation.

We rate this promise In the Works.