Federal loan modification is a term you are starting to hear more due to some of the programs that Barack Obama has introduced to try to keep responsible homeowners from losing their homes to foreclosure. Personally, I think that people that have done the responsible thing for years and are now the victims of the current economic conditions, should have options for being able to stay in their homes.

If the government can bail out the large financial institutions and the automobile manufacturers, why not bail out the average hard working American citizen? There is nothing to be gained by propping up these businesses when everyone that is using them cannot afford to keep a roof over their heads. I believe the best chance this country has of getting back on its feet is to get some of the money in the hands of the people who need it the most.

Here are some of the key points of the current plan the government has for federal loan modifications:

1. The refinancing of 4-5 million mortgages of responsible homeowners, making their mortgages affordable. For someone that has been paying on their home for several years and has been affected by circumstance beyond their control, there should be mortgage loan modification options available for these people. No one should pay on their home for years and then have to give it up for a year of unfortunate circumstances.

2. Money will be available for at-risk homeowners. These are the people that may have a small savings, but a diminishing source of income and foresee having problems making the mortgage payments in the future. A loan modification option will keep these people from facing foreclosure and losing their homes.

3. Supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac. People have lost faith in the mortgage industry as a result of the unscrupulous lenders that were around in past months. People have to know that their lender will be there for them and they will be honest with them up front. Without stability in the mortgage industry, their will not be lenders that are willing to lend money and borrowers will be hesitant to trust lenders. This country is only as strong as its people and its businesses.

I have always felt that if the government can help out the big businesses, they should also help out the heart of this country and that is its people. And they have finally done that. How this will all play out is yet to be seen, but now we have a starting point. We are still many months from being financial stable, but we are taking the necessary steps to get us there.