MADISON, Wis. -- New life has been breathed in to an old bill that could help as many as 400,000 homeowners who are facing foreclosure.

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The bill would help those facing foreclosure get new cheaper loans, instead of losing their homes.

It's part of a Foreclosure Aid Plan being piggy-backed onto a White House proposal to rescue mortgage giants Fannie Mae and Freddie Mac.

The federal plan will give Fannie Mae and Freddie Mac an infusion of dollars from the government, which will allow them to lend money at better rates. The process should ultimately allow people facing foreclosure to keep their homes.

The Foreclosure Aid Plan still needs congressional approval, but is expected to pass with full support.

The plan would also include new rules requiring lenders to issue loans after seeing proof of a borrower's income, and it stops lenders from penalizing customers who want to refinance or pay off their loans early.

Maria Bilogo in Madison may be one of those helped by the Foreclosure Aid Plan.

Bilogo is facing an uphill financial battle she never saw coming – foreclosure.

"For someone who owned the house for seven years, I was responsible," said Bilogo. "I have to work hard. I have to work from five in the afternoon to 10 in the morning to keep my house."

In December, Bilogo had to take three months off of work to recover from surgery. It was the same time her adjustable rate mortgage came due.

Bilogo had been making a $1,200 a month mortgage payment.

In less than one month, the payment shot up to $1,800 a month.

Now, Bilogo is working side-by-side with Kate Nardi of the Dane County Housing Authority, who's helping her fight to keep her home.

"Our business is housing and if we're going to try to help people become successful homeowners we also want them to stay in their homes," said Nardi.

As more and more sale signs pop up across the country, the federal government has announced crackdown on predatory lending practices.

But help for homeowners who are hurting, can't come soon enough.

"We're hoping that as a result of this big news with Fannie (Mae) and Freddie (Mac), there will be with that some legislation that focuses on the homeowners themselves," said Nardi.

"I want my house and I want to have my house, I don't want to lose it," said Bilogo.

The mortgage market in Dane County has been called stable, according to lending experts here.

One local mortgage industry leader said Dane County residents won't see much of a change in the lending process.

"Fortunately here in our market, we've been pretty stable," said Joe Theisen with the Wisconsin Association of Mortgage Brokers. "Home prices have stayed real stable. We're certainly seeing some pockets of upper end homes that may come down a little bit form their peaks, but overall I think Dane County and its surrounding communities have been pretty stable."

But Dane County has its share of foreclosures.

Currently, 1,781 homes are in foreclosure, according to RealtyTrac.com, 815 of those are in pre-foreclosure, which means the initial action to foreclose has been filed in court.

Mortgage counselors said consumers facing foreclosure need to know there are still ways to turn the tide.

Counselors advise consumers to contact their lender first and explain the situation, then talk to a housing or credit counselor who may be able to help negotiate with the lender.

A final option is called a short sale. This practice allows a seller to sell the house for less than the remaining value with the bank's permission. A short sale leaves the consumer without a home, but with their credit in tact.

Resources for Homeowners Facing Foreclosure

Green Path Debt Solutions: 1-888-776-6735

Hope Hotline: 1-888-995-HOPE

Dane County Housing Authority 608-224-3636