Maybe this time government intervention will really work. By encouraging lenders to rewrite all these mortgages and by keeping interest rates low, the package might work because it may cause people to take advantage of low mortgage rates or to take advantage of some refinancing.

Some negative feedback from analysts are because some of them think there might not be enough incentives for lenders to support this. This also may not help people who are already out of work or may already have bad credit.

People will be unhappy with the payments to borrowers and lenders for fixing all these loans in exchange for more low mortgage loans. Some people however are hopeful that the Home Owner Affordability and Stability Plan will help them.

Lenders to Allow Low Mortagage Refinancing

This plan will put aside about 200 billion dollars and provide government-controlled mortgage banks with the money to help homeonwers take advantage of lower refinance rates and avoid foreclosure. However, this will only apply to people for whom mortgage payments remain current but whose home equity has collapsed. Should I Refinance home

Personally I believe that this can work. If I have lost some money from my home equity, I hope that some lenders come along and help me with my refinancing.