The United States has been reeling from the results of an economic depression; President Obama has been dealing with this since the day he came into office. Amid the government bail-outs of banks and automobile manufacturers, 75 billion dollars has been allocated to boost the plummeting housing market. Refreshingly, Obama's Home Stimulus Plan takes the form of a bail-out to regular people who are facing the very real prospect of foreclosure.

This federally funded program seeks to help people stay in their home by allowing them to obtain a lower house payment when they would not be able to traditionally do so. There are programs available to meet the needs of homeowners who are not behind on their payments and programs for those who are already behind and mired in late fees. Both programs are for homes that are primary residences and are loans that are either owned or serviced by Fannie Mae and Freddie Mac.

The Refinance Option is available to people who have not been more than 60 days late on their loan in the last 12 months. These folks may have tried to get a refinanced loan with a more affordable payment, but did not qualify . Traditionally, you had to have a 20% equity in your home to obtain a refinanced loan. The current market value of their home dropped, and they did not have the equity any more. With this program the borrower can even owe up to 105% of the current market value of the home.

Loan Modifications are available through this plan for people who are facing the present or future foreclosure due to payments being in arrears on their home mortgage. This program is based, among other things, on a homeowner's financial situation. A state of hardship must be established which entails reduced income or increased expenses due to events beyond their control.