On July 1, the Federal Housing Finance Agency expanded the number of distressed property owners who can be helped with a loan refinance. Loans owned or guaranteed by Freddie Mac and Fannie Mae will be allowed to refinance if the borrower's loan-to-value ratio is 125%. Previously, the upper limit was 105%.

Okay, maybe this sounds like inside baseball, but here's the deal: Initially, owners who wanted to refinance their high interest loans could not be "upside down" by more than 5%.  For example, if an owner's loan amount is $250,000, his home has to be worth at least $238,000 (rounding off). This owner is upside down $12,000. The ratio of the home loan and home value would be 105%.

With prices falling the way they have been, many owners who were otherwise qualified could not take advantage of the program.  Now, though, more can be eligible. More owners with declining house values may be able to refinance because the upper laon-to-value limit was stretched to 125%.

There are other restrictions and features. Lenders all have their own underwriting guidelines. Anyone interested should check out the FHFA website, HUD-approved counseling agencies as well as their own lenders.

Granted, this program is not a cure-all, but it's nice to see people in charge chipping away at the foreclosure problems.