We all have heard about government bailouts. The banks and financial institutions got a bail-out. The automobile manufacturers got a bailout. Even an insurance company giant got a bail-out. You hear a lot of regular people ask, “Where is my bailout?”

The government is finally doing a bail-out for the average Joe! The Home Stimulus Bill has 75 billions dollars appropriated to assist homeowners who are facing foreclosure with a Federal Loan Modification. This is a total reworking of an existing Fannie Mae or Freddie Mac loan to obtain a lower monthly payment that a homeowner can better afford. The lenders who are approved to grant these receive an incentive of $1000.00 for each completed modification. Millions of homeowners will benefit from this bail-out money.

These modified mortgages are intended to boost the housing market and help the homeowner by giving them an option to keep their home. That is really the best bail-out of all. To qualify, the homeowner will need to have experienced a bona fide financial hardship. This means an increase in expenses or a decrease in income due to no fault of their own. It is not hard to find someone in this current economy that meets these criteria for hardship. Of course, there are other application guidelines that the government and the bank have laid down.

This plan is a great opportunity not only to just save your home, but it also helps you reduce your principal by paying you a $1000.00 incentive for each year you are current in your payments up to five years! So, besides your chance to save your home, you actually can get a little bit ahead, too.

Before you approach your lender, be sure you do all your homework. Find out all the details about a Federal Loan Modification, and see if you might qualify. Compile all your information, being sure you have lined it up with the application guidelines.

To stop foreclosure, click here to learn how to qualify for Obama's loan modification.

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