Homeowners frantic about nearing foreclosure may have been jumping with glee upon hearing about housing related government grants aimed as debt relief, as part the economic bail-out program under President Obama's administration. This is a myth, certain media group, such as the internet and television broadcasts is the culprit to this horrible misconception and disappointing idea about government grants for housing related issues.

The truth of the matter is that, the government will not actually bail out citizens of any mortgage woes by simply handing out free money. This grant is provided to citizens in a form of assistance to help homeowners in several ways to prevent foreclosure, except handing out free money. The Department of Housing and Urban Development (HUD) is given the task to provide free counseling that may be availed by homeowners.

This hope-sinking fact may be stressing to homeowners whose foreclosure notice has just been received today. Relax, you may not get free money from the government, but government assistance such as counseling is better than nothing at all. In fact, as soon as you know that mortgaged home property is nearing foreclosure, run to the nearest HUD center and ask for help right away, this will save a homeowner unnecessary stress of finding feasible ways on their own to bail out from this difficult problem.

Homeowners may be eligible to avail of the "Making Home Affordable" program, which is part of President Obama's Homeowner Affordability and Stability Plan (HASP). In which homeowner will be granted with a special loan modification or refinancing scheme to reduce monthly amortization and thereby allowing keeping one's home? Aside from counseling, homeowners will also be assisted to package reconstruction or refinancing proposals to banks and other financial institutions to ensure approval.

This is the actual service that will serve as the "debt relief" to be extended to homeowners from government grants. This kind of service from the government should be delivered by the media to comfort homeowners across the country rather than fool them into thinking that debts from housing mortgage can be relieved through government grants of handing out free money.