Counseling foreclosure homeowners,

and some money funded through other sources, will also be part of the program to help save people from home foreclosure.

Although the major city of Seattle in Washington is not experiencing widespread home foreclosures, the city plans to offer loans of up to $5K to about 40 families.

The city will provide the loans through two nonprofits, and hopes to help as much as possible for those in need, to keep their homes.

The mayor, who announced the pilot program at a news conference Wednesday morning, said, It's far more and better also cost effective to help a family stay in a home than to help a family in homelessness, as we all know living in this cold dark climate is deadly.

The city hopes the these small loans will prevent families from being forced into sales by harsh and cruel lenders. Mr. Mayor said when people lose their homes, it decreases tax revenue for the city and can drag down the value of surrounding homes in the neighborhood. A great place to find cheap bargain rehab houses is Rehablist.com.

Homeowners who earn and make $48K to $50K a year, or about 80 % of the median income, can qualify. The loans would be repaid after their homes are refinanced or sold.

Counseling, funded through other sources, will also be part of the program. Another very helpful government resource is this US Government site.

The city will then look at the results of the $200,000 loan program in six months and determine whether to expand it or end it.