Just how much can a government do? This seems to be the question on the rise when it comes to stemming mortgage foreclosures, now that there is a continuous slide in the current economic set-up that is changing the financial climate across the globe.

During times of economic slowdown, the Federal Reserves Bank decides on the appropriate measures how to deal with the situation. There are two main economic policies on how to fix an ailing economy.

Mortgage refinancing may be in the tune of a bailout that bankers are not really piqued on doing. Since refinancing a rather poor mortgage is the next best thing to financially starting anew, there can be good and bad indications of its notion.

There is a new program by the Federal Housing Administration (FHA) that will insure $300 billion worth of payments of mortgage loans starting October 2008 up to September 2011.

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