The recent data claims twenty-four percent of all homeowners with mortgages are "underwater," signifying that they owe more on the residence than it is worth.

The Obama administration on Friday announced that it plans to expand the reach of its home loan modification program, which could assist thousands of unemployed and underwater Michigan homeowners.

However, billed in some headlines as a big expansion of mortgage relief, the plan is cited to be better thought of in the terms used by the administration's own news release: a "refinement" of the existing program.

The major changes the administration seeks is to introduce more temporary loan forbearance for unemployed borrowers and incentives for creditors to facilitate write-downs of loan principal for underwater borrowers, rather than decrease in interest only.

Vince Parlove, president of First Preferred Mortgage in Bingham Farms uncovered that only those with credit scores as low as 500 can avail the FHA refinancing program.

On a whole, the changes may however, prevent a few more foreclosures than would have otherwise occurred.