The new program begins March 4th, this top Q&A helps to answer many of the questions, including the Moral Hazards of rewarding only those who aren't/can't make payments.
One key relief in the new plan provides a way for people who can't refinance because of lower value to refinance a Fannie Mae or Freddie Mac loan after March 4th if the combined first and second mortgages do not exceed 105% of the house value on a primary residence. This makes way for those who have low/no equity to lock in possible 37 year low interest rates.
To find out if you can refinance, contact your lender after March 4th.
*thanks to John Thompson for this post.
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