There are two main parts to the program.  One is focused on loan modification, while the other is centered on refinancing.   Under the Home Affordable Modification program, the program plans to help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments.  Lenders would reduce mortgage payments to no more than 38 percent of the borrower’s income. Guidelines of the Home Affordable Modification Program provide a succinct overview of the program’s elements.

Under the Home Affordable Refinance program, as many as 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac will be able to refinance their loan.

The questions remain:  Will these programs make a true difference in our housing market?  Will these programs relinquish the plethora of for sale in neighborhoods in the Phoenix area?

The answer is:  Only time will tell.