For many people, the last few years have been particularly hard financially. Many in Baton Rouge have already or might soon be facing foreclosure on their homes. Now, the U.S. Department of Housing and Urban Development says it is nearing a settlement that could help some homeowners avoid foreclosure.

Critics of the settlement are saying that the settlement wouldn't help enough people. The reason: the settlement wouldn't affect any mortgages guaranteed by Fannie Mae or Freddie Mac, which guarantee most of the mortgages in the United States. It would only affect mortgages at some major banks; however, the federal government says it would help nearly one million home owners with their mortgages.

The agreement would mean that major banks would provide $20 billion to $25 billion in assistance to homeowners who are falling behind on their mortgages. Many of the people would be directly impacted with mortgage principal reductions.

The U.S. government is hoping this settlement will begin to ease the strain on the national housing market, keep people in their homes and, along with other initiatives, put people back to work. While this could affect some homeowners facing foreclosure in Baton Rouge, it isn't clear how quickly changes from the settlement could be implemented or how many people it might affect on the local level.

If you are faced with financial difficulty and may be facing foreclosure, it might be helpful to speak with a Baton Rouge bankruptcy attorney. They may be able to help decide on the best option to reduce your debt and clear the path for a stable financial future.

Source: Reuters, "One million homeowners may get mortgage writedowns: U.S.," Margaret Chadbourn and Aruna Viswanatha, Jan. 18, 2012