Barack Obama has announced the largest Homeowners Bailout plan in our nations history with the Homeowners Bill included in the 2009 Economic Stimulus Act.

In his plan his administration would like to help millions of homeowners avoid losing their home to foreclosure through a variety of loan modification programs. This Foreclosure relief program is not intended to help all homeowners; only responsible homeowners who have found themselves upside down, that is No Equity, in their home. Fannie Mae and Freddie Mac will play a large role in processing the mortgage modifications. The HUD and FHA will likely play roles, but this part of the plan has yet to be announced.

The Home foreclosure prevention plan helps many homeowners who are facing foreclosure, are in Pre Home Foreclosure, or simply are not late on their mortgage but are facing the possibility of going into default do to a financial hardship.

A big change will now allow Loan Modification to be decided in bankruptcy. A Court Modification will be based on the homeowners Modification Eligibility this is determined by a Eligibility Test and or an Affordability Test. This type of loan modification is different than a tradition Mortgage Mitigation plan offered by a private company. Lawyers are now preparing to bring homeowners cases to Modification Court within the next 3 months.

Part of what will make this Loan bailout plan successful is that it offers Lenders over 200 billion dollars in TALF Loans to open up credit lines.

Prior to this foreclosure relief program, the Bush administration had created Hope for homeowers programs or also known as Hope now programs. However these programs failed because there was no incentive for lenders to lower interest rates or modify the loan in any way. In short they would have to take the full loss on the amount the loans were reduced by. In addition there was no assurance to the lender that after they modified the loan that the homeowner would not still default in the near future. This is why the introduction of the Mortgage Modification Test is so important.

Home owners seeking to modify their mortgage loan can go to iHomesavers and take a free Modification Test to determine their Mitigation Eligibility. Home owners can also receive free evaluations and consultations to determine if they are eligible and if so how to take advantage of the new Homeowners Bailout programs.

If there were ever a time to save tens of thousands of dollars on your home loan it is now. After all you're going to pay for this bailout through taxes over the next 30 years, it only makes sense that you get some of it back by reducing the cost of your home loan.