Devoted to interest rates, loans, and lending institutions

The US government has proposed different programs, including Project Lifeline, to try and help homeowners avoid foreclosure. However, many of these programs are voluntary, and depend on mortgage lenders to work with you on loan modificaton.

And whether or not you get a loan modification, explains CNN Money, depends on how much it costs mortgage lenders:

If keeping an at-risk borrower in their home is going to cost the lender more than a foreclosure will, that homeowner is usually out of luck. The good news is that foreclosures are expensive - at least $50,000 according to the Center for Responsible Lending.

Mortgage lenders will take an honest (and often brutal) look at your financial situation. They will see how much you can afford to pay each month, and whether it will cost them more than a foreclosure.

Unfortunately for some, they are in such dire straits that they can't afford the mortgage payments even after a loan modification. In those cases, mortgage lenders will go through with the foreclosure.

Bottom line: Mortgage lenders are in the business to make money. They will do what is best for their bottom line, regardless of what that does to yours.