The housing crisis has taken a toll on millions of families in New York and elsewhere in the United States. More than anything, many homeowners who are in over their heads with mortgage payments they can't afford just want a fresh start.

Luckily, the federal government announced that programs aimed at providing aid to distressed homeowners will be expanded and continued through 2013. President Obama said last week that "responsible homeowners shouldn't have to sit and wait for the housing market to hit bottom to get some relief."

It was announced that the federal government will triple incentives to lenders who participate in the Home Affordable Modification Program by lowering the principal amount of mortgages for homeowners who are at risk of losing their homes to foreclosure.

The government will also offer incentives for principal reductions made to mortgages owned by Fannie Mae and Freddie Mac for the first time ever since the program began three years ago.

A second program will also be kicked off soon called the Home Affordable Refinance Program, the president said, which will also be aimed at helping homeowners to refinance their existing mortgages.

Under the programs, homeowners may be quailed for interest rates as low as 2 percent for five years and could get additional time to pay off their loans. It is estimated that the programs will decrease mortgage payments by about $500 per month on average.

So far, the program has assisted more than 1.7 million homeowners who were at risk of foreclosure. However, it has not been as successful as officials had hoped, and only about half of all applicants end up getting approved.

Hopefully, these new initiatives will result in many more struggling homeowners getting the help they deserve.

Source: Fox News, "Obama administration to extend and expand foreclosure relief program," Jan. 27, 2012