Tens of thousands of Massachusetts homeowners may benefit from the Obama administration's new program designed to help borrowers in danger of foreclosure to stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.
The program, unveiled on Wednesday, is intended to help up to 9 million homeowners nationwide, according to the Obama administration.
In Massachusetts, the industry journal Banker & Tradesman estimated that about 210,000 residents are saddled with mortgages that are "underwater," the term used when the borrower owes more than the home is worth.
But only about about 29,000 mortgagees meet the criteria for help under the federal assistance program -- which requires that the home's value be no more than 5 percent below the amount owed, according to Vincent Valvo, editor in chief of Banker & Tradesman.
While other estimates suggested a higher number of Massachusetts residents may be eligible for help, federal officials urged homeowners t be patient in inquiring about the "Making Home Affordable" program because lenders were likely to be flooded with calls in the next few days.
The Obama administration's program has two parts: one to work with lenders to modify the loan terms for up to 4 million homeowner, the second to refinance up to 5 million homeowners into more affordable fixed-rate loans.
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