Losing one’s home to foreclosure action is a nightmare for any American who struggles to meet mortgage obligations. However, not every household is able to keep up with mortgage payments. Income problems, resets, high interest rates and other side-effects of a bad economy can force a lot of people to become delinquent and risk possible foreclosure.

Despite efforts by various sectors to halt the alarming climb of foreclosure rates, more and more American homeowners live in fear of foreclosure. A significant rise in the number of homes closed down is enough to make any homeowner tremble in fear of the dreaded F-word: Foreclosure.

According to a report made by Realty Trac, Inc., a California foreclosure listing firm, foreclosure filings reached nearly 50 percent last May, an alarming figure compared to last year’s rate. In May, 261,255 homes got at least one foreclosure-related filing, 48 percent higher than figures in the same period last year.

In the midst of all these, one question on the top of people’s minds is: What is the government doing to alleviate the housing crisis? Let’s take a look at some of them:

The government agency tasked to give housing assistance is the US Department of Housing and Urban Development (HUD). Among its many programs is the FHASecure, which is administered by the Federal Housing Administration (FHA). FHASecure is available to all those in dire need of refinancing help. Also, FHA-insured loans, which are fully backed by the government, are available. Applicants who will avail of these can get low and more affordable mortgage fees.

Next year, HUD may get $65 million next year to sponsor programs directed at providing education about the nationwide mortgage and housing problem. The rationale behind these education programs is that in order to identify the right solutions to resolve the crisis, we must have a well-rounded understanding of the issues involved.

President Bush has also pushed for a bill designed to provide solutions to the problem, but it has yet to be finalized in Congress.

And upon the initiative of the government, counselors, servicers, investors, and other mortgage market participants formed the Hope Now alliance, which aims to maximize outreach efforts towards at-risk homeowners and help them stay in their homes. Just recently, Hope Now introduced a new set of guidelines to better help homeowners with their housing concerns. 

Over the next five years, according to a Credit Suisse report, 6.5 million loans will go down the foreclosure route. This may cause alarm for most people, especially at a time when the ratio of homes being foreclosed outnumber the efforts being taken to eradicate it. But one thing remains clear: no matter how daunting the task at hand is, because of concerted government and private efforts, we may yet see a significant drop in the number of foreclosed homes.