Although the administration of President Obama promised to fight the foreclosure crisis aggressively, officials are yet to find and decide on which course of action to take.

In addition to pushing for a foreclosure moratorium that will last for six (6) months, other possible actions include doubling the deduction in mortgage interest rates, additional tax credit to be enjoyed by home buyers and launching a program involving mortgage refinancing sponsored by the federal government.

For the past two years, there have been numerous plans to stop foreclosure that were discussed by both the financial industry and the government. However, the challenge lies in agreeing on one that will divide the losses between the lenders and borrowers.

With such a consideration, the White House is bent on designing a foreclosure rescue program as well as a prevention package that will basically promote refinancing. However, it is focused on making sure that the irresponsible lenders and borrowers will not benefit from the said program.

In a letter written to congressional leaders by Lawrence Summers – Obama’s choice to head the National Economic Council, a commitment was made by the government to set aside as much as $100 billion to be used in making sure that the enduring foreclosure crisis is finally addressed.

However, in the fine print, the letter stated that the Obama administration has no plans of helping every distressed homeowner. The ones which are targeted by the refinancing program are only those who are responsible and burdened by a “preventable foreclosure”. Determining who will be worthy or not is yet to be discussed and finalized.

For now, it is still too early to tell which course of action Obama’s administration will take. In the meantime, officials are thinking of declaring a bank owned foreclosure moratorium in order to give them time to come up with criteria for separating the mortgages that can be and cannot be saved as well as finalize the refinancing program for the worthy borrowers and the tax credit for the home buyers.