It’s no secret that many homeowners, both locally and around the country, are feeling the effects of the weakened economy fueled by our current housing crisis, rising costs of living and negative job growth. This current economic climate puts some homeowners behind on their mortgage payments and then ultimately at risk of facing foreclosure and losing their homes.

MSNBC reports that help may be on the way. As some may remember, control of IndyMac bank was taken over by the FDIC a few months back. Well now the FDIC is “experimenting” with a program to help homeowners who have fallen behind and risk losing their home.

The new “Loan Modification” program does not forgive debt. In the case of the family profiled in the story, the interest rate was lowered from 6% to 3% for a 5 year period and increased the term of the loan from 30 years to 40 years. This resulted in reducing the mortgage payment from $3000 to $1700.

According to FDIC Chairman Sheila Bair this program has already helped 5,100 families stay in their homes. Other banks including Bank of America are introducing similar programs.

Check out the full story here…