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What's in it for You?

Here are the plan's major components:

• Help homeowners who are current on their payments but are paying high interest rates and are unable to refinance because they lack sufficient equity in their homes…a common situation these days as housing values tumble.
• Assist about four million people who are at risk of losing their homes by providing incentives to lenders to alter the terms of loans to make them more affordable for the homeowners pinched by the current economic crisis.
• Increase the credit available for mortgages by making $200 billion of additional financial backing to Fannie Mae and Freddie Mac for loans.
• The plan also suggests that bankruptcy judges be given the power to change the terms of mortgages and reduce the monthly payments.

Next: Qualifying for a Payment Reduction