Homeowners who have found themselves in default now might find some relief. The Obama administration has been trying to keep defaulting owners in their homes and now has a program to help.  In a recent article in the New York Times, a new government program will help to end the foreclosure crisis. This program will allow owners to sell their home for less than they owe.

It is a well known fact that many homeowners are in trouble. In fact more than five million households are behind on their mortgages and risk foreclosure. The government's $75 billion mortgage modification plan has helped only a small slice of them.

Under this new federal program, a lender will use real estate agents to determine the value of a home and thus the minimum to accept. This figure will not be shared with the owner, but if an offer comes in that is equal to or higher than this amount, the lender must take it.

This program will begin to take effect on April 5, and could encourage hundreds of thousands of homeowners in trouble who have not found help thru the loan modification program or thru other programs. In addition, this program will also be a benefit for communities, as it will mean fewer empty foreclosed houses waiting to be sold by banks.