Details of President Obama’s proposed plans to allow homeowner’s who are underwater to refinance have emerged. First mentioned at his Jan 24, 2012 State of the Union address, this plan is still subject to the approval of Congress. The propsed plan, with similarities to HARP, which we have previously blogged about, does have a  major difference with the HARP plan in that, if approved, it would be available to homeowner’s whose loans are not backed by Fannie Mae or Freddie Mac.

Read on for more details of the proposal.