The recent Obama administration announcement to extend and expand programs to help homeowners who are struggling to keep their homes is certainly welcomed news for many California residents who are in danger of foreclosure.

The Home Affordable Modification Program, known commonly as HAMP, is a $29 billion mortgage modification program that has come under heavy scrutiny the last few years. Many homeowners who have gone through the process of requesting a modification claim the banks frequently lose paperwork and do not return phone calls. In turn, many homeowners end up not getting accepting into the program.

Aside from the shear frustration of trying to obtain a modification, in the past two years, less than half of the 1.7 million who received a trial modification, actually ended up receiving a permanent modification.

However, the administration's plan is to now extend the program through 2013, and to triple incentives to those private lenders who do lower the principal amount for homeowners.

Aside from HAMP, the administration also promised to offer some current homeowners the opportunity to refinance mortgages under the Home Affordable Refinance Program.

In the end, extending and expanding the program may offer hope to the many California residents who are living in fear of losing their home. However, if history of HAMP has taught us anything, the process of obtaining a modification can still be quite confusing and frustrating. This is why it's a good idea to talk with an attorney to get a full understanding of the process, and other foreclosure prevention options that may be available.

Source: The Washington Post, "Mortgage modification program will be extended for 1 year, expanded for homeowners with debt," Jan. 27, 2012