Introduction to Federal Help to Avoid Foreclosure

Loans are intertwined in the economy to such an extent that when a lot of them go bad within a short period of time, the government sometimes steps in and offers help. This help may be in the form of outright bailouts, or it may be in the form of modifications to loans. When a big wave of foreclosures hit American homeowners beginning in 2007, the federal government began crafting and funding programs to help them, with the idea that it would stabilize not just the housing market but the economy overall.