The U.S. Housing and Urban Development Secretary said last week that the government was nearing a settlement with major banks to help homeowners hurt during controversial and shady mortgage lending practices that contributed to the housing crisis over the past few years.

Many of the homeowners who fell victim to these practices have or are now facing foreclosure. The deal that could be struck within the next couple of weeks would supposedly help over one million homeowners get help with their mortgages and stay in their homes.

Some states have said they will not join in the settlement with the banks because the proposal is too lenient on banks. The Obama administration hopes this agreement will help reach more homeowners affected by the crisis and substantially reduce the impact to the housing market. The administration says that this settlement would allow some Americans to receive a reduction in their mortgage, and it would help fix servicing problems on current mortgages.

Some say that because this settlement wouldn't affect the mortgages guaranteed by Fannie Mae and Freddie Mac, the reach would be limited, as they guarantee most of the mortgages in the United States. Even with this settlement, many more Americans will continue to struggle with their mortgage payments and foreclosure might seem like the only way out.

People facing a foreclosure may want to seek the help of an experienced bankruptcy attorney. They can help you through the foreclosure process and work to minimize the impact a foreclosure has on your financial future.

Source: Reuters, "One million homeowners may get mortgage writedowns: U.S.," Margaret Chadbourn and Aruna Viswanatha, Jan. 18, 2012