The next wave of home owner relief comes in the form of mortgage modification. The Obama Administration kicked off a plan that it hopes will help up to 9 million Americans. The program has two parts: First, to work with lenders to modify the loan terms for up to 4 million homeowner, and second, to refinance the property of up to 5 million homeowners into more affordable fixed-rate loans, according to the AP. Lenders could lower interest rates to as low as 2 percent for five years. Rates would then rise to about 5 percent until the debt is paid off. Wells Fargo, which is facing massive defaults in portfolios acquired from Wachovia, promptly announced it will offer the terms of the plan to mortgage holders who qualify, notes MarketWatch.  

But even the administration is urging patience. Some fear that eligibility restrictions and delays in execution will thwart many from seeking relief. Some expect the plan will require some applicants to provide "proof of hardship," such as evidence of illness or job loss, to be eligible. There could also be legal challenges.

For more:
- here's the AP article

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