It has been three months since the new foreclosure prevention program went into affect. And of the four million homeowners facing foreclosure the program was suppose help only 100,000 homeowners have received mortgage modification offers.  No word yet on how many of those offers were actually accepted.

According to the Mortgage Bankers Association, nearly 5.4 million mortgage were nearing foreclosure within the first three months of 2009.  With only 100,000 homeowners receiving an offer of help in that same period, it is evident that our foreclosure prevention efforts are simply inadequate.

One of the main issues at hand is that many of these foreclosures are now being fueled by job losses and prolonged unemployment which is pushing many otherwise “good” homeowners into foreclosure.  The mortgage modification programs which focus on lowering monthly payments quickly become unaffordable for those experiencing prolonged unemployment which is becoming more commonplace.

Since December, nearly 6 million jobs have been loss; many of the jobless have been homeowners. At this stage, if we want to get serious about preventing foreclosure, we need to look into programs that provide loans or grants that will act as a “bridge” while homeowners search for work.

Until then, those homeowners facing foreclosure should not exhaust their savings without considering all of their options including bankruptcy.  If you are a homeowner facing a job loss, consider the current state of the economy.  Right now, unemployment is becoming prolonged for even the most skilled amongst us.

Under these circumstances it may not be wise to exhaust your savings and risk losing your home to foreclosure in the long run.  Before using savings to repay unsecured debt, speak with a bankruptcy attorney about your bankruptcy options.  Your savings may be the bridge you need to save your home from foreclosure while searching for a new job.