WASHINGTON (AP) - The Obama administration is expanding a program to stave off foreclosure for borrowers who owe more than their homes are worth.
Housing secretary Shaun Donovan says borrowers who owe up 25 percent more than their home's market value will qualify for government help refinancing their mortgages. The program currently is limited to borrowers who owe 5 percent more than their homes are worth.
The change addresses concerns that the initial terms excluded too many so-called 'underwater' borrowers. Donovan announced the change in Las Vegas on Tuesday.
The program is part of a broader effort to help at-risk homeowners. Another key component pays incentives for mortgage companies to lower borrowers' payments.
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