On Wednesday President Obama finally disclosed his $75 billion plan that could help up to 9 million struggling borrowers. The plan will assist borrowers dealing with lowering home prices and unrealistic mortgage payments, by allowing mortgage refinancing or loan modification. This program will be aimed at those who are still current in making their payments, but in danger of defaulting.

In order to succeed, the plan has benefits for mortgage servicers and investors, who have been opposed to loan modification. Servicers would be given $1,000 per modification and also another $1,000 per year for three years if the borrower is able to stay current on their loan. Servicers will also get $500, and mortgage holders $1,500 if they modify at-risk loans for borrowers before the borrowers gets behind on their loans.

However, there are a few sticky points to the plan that the financial industry may not like. Congress will have the ability to amend bankruptcy laws, allowing judges to modify mortgages. Obama mentioned that this is necessary as bankruptcy ends up creating a deeper hole in our economic situation, "In the end, all of us are paying a price for this home mortgage crisis,"...And all of us will pay an even steeper price if we allow this crisis to deepen -- a crisis which is unraveling homeownership, the middle class, and the American Dream itself. But if we act boldly and swiftly to arrest this downward spiral, every American will benefit."

For those facing a debt larger then their house value, a large issue as Zillow is reporting that prices have fallen 17.5%, borrowers who owe over 80% of their home´s value can refinance and get reduced monthly payments. This is a greatly needed step for many as lenders are usually unlikely to refinance for those who have less then 20% of home equity. However, only those who are current with their payments and with loans held/guaranteed by Fannie Mae and Freddie Mac are eligible. Also, the new mortgage added to the cost of refinancing, cannot be more then 105% of the home´s current market value, which does eliminate many of the areas especially devastated by the market crisis. The program will start on March 4^th and it will allow borrowers to refinance with 15 or 30-year fixed rate mortgages at the current market rate, right now at 5%. The loan balance will not be reduced. Obama´s administration estimates that they can assist around 5 million struggling home owners with their refinancing measure.