Fannie May and Freddie Mac may get permission from federal regulators to refinance mortgages with loan-to-value ratios above 105%.  This would be an expansion of the Home Affordable program which was announced in February that was aimed at helping to prevent more foreclosures in the United States during this recession.

The newly expanded powers may allow Fannie and Freddie to refinance mortgages with many families who have homes that payments have been made on, and that the value of the home is still worth keeping.  

It will be important that during any renegotiation process, that the homeowner be fully represented to make sure that another bad loan occurs in the future. 

If you are facing foreclosure, contact the Maryland mortgage modification attorneys of Chaifetz & Coyle, PC at 410-992-0444.