Foreclosure rescue refers to funds received either through loan modification

Loan modification

Loan modification, the systematic alteration of contactual mortgage loan agreements, has been practiced in the United States since the 1930s. During the Great Depression loan modification programs took place at the state level in an effort to reduce levels of loan foreclosures...

 or from a government grant that enable a homeowner to prevent foreclosure

Foreclosure

Foreclosure is the legal process by which a mortgage lender , or other lien holder, obtains a termination of a mortgage borrower 's equitable right of redemption, either by court order or by operation of law...

.

Legitmate foreclosure is distinct from a foreclosure rescue scheme

Foreclosure rescue scheme

A foreclosure rescue scheme is a scam that targets those whose house is facing potential foreclosure. The scheme preys on desperate homeowners whose mortgages are in default by offering to prevent the foreclosure...

 in that it is clean and legal, and it gives the homeowner a realistic opportunity to regain his/her ability to get out of the hole and make regular timely payments.

In 2009, President Barack Obama

Barack Obama

Barack Hussein Obama II is the 44th and current President of the United States. He is the first African American to hold the office. Obama previously served as a United States Senator from Illinois, from January 2005 until he resigned following his victory in the 2008 presidential election.Born in...

 unveiled a plan to provide foreclosure rescue to homeowners. This included the ability to modify loans, lower interest

Interest

Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money, or money earned by deposited funds....

rates, and to help homeowners before they defaulted.