Obama's Homeowner Affordability and Stability Plan

The plan is part of the $275 billion stimulus package and includes
 two main ingredients: helping homeowners refinance into more
affordable loans, and giving incentives to lenders to modify mortgage
terms for borrowers.

In order to be eligible for government refinancing help, homeowners must have conforming
mortgages held by government-controlled companies Freddie Mac or Fannie Mae and must
owe no more on their homes than 105 percent of the current market value.

In order to participate in the mortgage modification program, homeowners must be "at risk of default"
with home loans originated before January 1, 2009 and must not have a principal balance of more
 than $729,750. For detailed summary of plan click here.