Freddie Mac, Fannie Mae loans can be modified 

The Obama administration is planning to tinker some more with its mostly unsuccessful efforts to stem the tide of foreclosures.

The latest effort is aimed at extending existing programs to allow unemployed borrowers to defer part, or all, of their monthly payments for up to 12 months while they are out of work.

The nation’s employment crisis has put millions of jobless homeowners at risk of losing their homes because they cannot afford to make their monthly payments when they lose their jobs.

The new program is similar to one announced in July 2011. That earlier program, however, only included loans backed by the Federal Housing Administration (FHA), and mortgages serviced by lenders participating in the government’s loan modification program.

The expanded program will now include loans backed by Fannie Mae and Freddie Mac, the two big government-sponsored housing finance agencies that underwrite nearly half of all mortgages.

Under the expanded program, both Fannie and Freddie will allow lenders to offer unemployed borrowers up to six months of lowered, or zero, payments without prior approval.

Lenders may extend forebearance options for up to 12 months with approval.

Unemployed homeowners who have already missed some payments can still apply for forebearance but can skip a maximum of 12 payments.

After that, if the borrower is still unemployed and/or unable to make payments, the borrower and lender must consider other options, including a permanent loan modification or short sale of the home.

In most cases, the borrower will have to pay back the lowered or skipped payments over a longer loan period.

The expanded mortgage forebearance program would provide out-of-work borrowers more financial security while they search for a new job.

Last year, some two million families lost their homes to foreclosure. The nation’s high and protracted unemployment rate has been blamed for many of the losses.

It is unclear how many borrowers might be eligible for the expanded forebearance program.

The program is voluntary, meaning that it is up to lenders to administer.

One thing, however, is clear: If you are having trouble paying your mortgage, whether you are out of work or not, you need to get in touch with your lender—NOW!

Don’t delay. There are programs out there. If this one doesn’t work, another one might.