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President Obama announced changes in the HARP program today, aimed at allowing more homeowners to refinance their homes. But will it work?

We all know that many homeowners have lost their homes to foreclosure in recent years and many more are unable to afford their mortgage payments. Part of the problem is that interest rates on existing mortgages are high. Many homebuyers purchased homes with a loan that started out with a low (teaser) interest rate which increased after a couple of years. Most of these buyers planned to refinance when their interest rates were raised. The problem is that this house of cards came crashing down. Home values plummeted. Although many homeowners can qualify for a home loan, their home is now worth less than the balance of the loan.