As the domestic economy continues to falter and foreclosure remain high the government has announced a massive mortgage relief program.

Government programs that have been enacted in the past year have failed to aid the vast majority of homeowners. This year analysts predict that the number of foreclosures could potentially double. A continued prolonged slide in domestic housing markets could be disastrous for local communities and homeowners.

Recognizing the need for action the government has earmarked several billions dollars to help prop up ailing homeowners. The money is intended for mortgage companies and banks that work with struggling homeowners. This program is similar to ones that have been tried in the past and were found to be ineffective.

There are also some private institutions that have begun a policy of working with homeowners to restructure or refinance existing contracts. The scale of the current crisis and its potential for getting even worse has forced mortgage companies to reconsider some of their existing agreements.

While there are many institutions offering assistance to struggling borrowers the opportunities being offered can be mixed, even within the same company. Bank of America recently announced that they would voluntarily renegotiate with some homeowners who were having difficulty maintaining their current mortgage. Soon after this announcement they released the news that they  expected their foreclosure filings to almost double in 2010.

Offering more opportunities to refinance while simultaneously predicting to substantially increase their rate of foreclosure is a contradictory policy and suggestive of the scope of the current crisis.  Prices have been moving so wildly and unpredictably that it is hard for home owners and banks to make prudent financial decisions.

While things are currently tricky their is hope. The new government mortgage relief program should make mortgage holders more willing to negotiate. If you have a mortgage you are unable to pay or have seen the price of your home fall significantly you should be able to get help. Contact a mortgage lender, either your current lender or another financial institution to discover the options available to you.