Foreclosures are on the rise and have clearly become a major problem that needs fixing.

Perhaps lost in all of the “bad news” is that there is still well more than 90 percent of homeowners throughout the nation who are current on their mortgages. These folks have battened down their hatches and are prepared to ride out the “perfect” housing market storm until the bitter end.

But some of them may not make it.

In an effort to try and ensure that most do, President Barack Obama and his administration are considering a plan to assist cash-strapped homeowners before their homes fall into foreclosure. It’s a forward-thinking initiative that was met with optimism on Wall Street, according to a report on Reuters.com.

Here’s a snip:

“In a major break from existing aid programs, the plan under consideration would seek to help homeowners before they fall into arrears on their loans. Current programs only assist borrowers that are already delinquent…. Under the evolving plan, sources said homes would undergo a standardized reappraisal and homeowners would face a uniform eligibility test.”

There is clearly more meat to the plan, which is still in the early stages of development. However, Obama has pledged to use a good chunk of the leftover money ($350 billion) that remains in the second installment of the $700 billion “bailout.”

And this article reinforces that pledge, indicating (again) that at least $50 billion will be put toward reducing mortgage interest rates and other preventative measures to ensure that more homeowners can gently put the breaks on foreclosure before skidding out.

The sooner the better.