Particularly likable are incentives for lenders to put borrowers through the plan. Every time a lender finds a qualified homeowner to go through the loan modification plan, for instance, they receive an upfront fee of $1,000, up to $1,000 a year, for three years, as long as the borrower stays in the program. There are also incentives going to the borrower who stays in the program; they can get $1,000 a year, going towards the principal, for five years.

"That's going to help a lot," says Vermillion. He is also encouraged that under the new program, restructured mortgages will account for no more than 31 percent of the borrower's monthly income.

But what if you're not among the 9 million the Obama administration estimates who will be helped by their plan? "I think in six months, they'll do a modification of this plan, because this isn't going to help the masses," theorizes a hopeful Zuccarelli. "They say it'll help 7 to 9 million homeowners, but every day, 10,000 homes are going into foreclosure."

Do you qualify?

If you want to attempt a self-diagnosis, here are some questions to ask yourself:

• Are you living in your house? If you said, yes, good, because you have to be, to take advantage of the plan. And don't fret by the word "house." You're eligible for the plan if you're living in a condominium, cooperative or mobile homes, if the latter is attached to a foundation and your state laws consider it real estate property.
• Are you still making a regular income? If yes, and you can prove it, you're a good candidate for the plan.
• Are you in foreclosure? You can't get refinanced through the plan, but you may be a good bet for the loan modification. In any case, get the proceedings started, says Zuccarelli, and while everything gets sorted out, you can halt the foreclosure proceedings.
• Are you in the midst of bankruptcy? If you're sighing a "yes," relax: you aren't automatically disqualified for consideration for a loan modification. You still have a shot.

That's the thing, you may have a shot at saving your house no matter what you hear or read -- even in this article. You should investigate this further. Call your lender and see if you're eligible, and you can get more information at this U.S. Department of Housing and Urban Development web site.

"Don't disqualify yourself," urges Zuccarelli. "Call your lender, and see if you can get the loan modification or refinancing. But realize, it's not a one-two-three process. You have to be patient and very persistent. You have to be an advocate for yourself."

But the one thing you absolutely must do -- and this, believe what you read -- stay far away from any company that promises to help you navigate the Homeowner Affordability and Stability Plan for a "modest" upfront fee.

Or perhaps they will arrange it so that you make the first mortgage payment to them instead of your lender, promising that, oh, sure you've been enrolled in the Homeowner Affordability and Stability Plan. Don't transfer your deed to a company insisting that they can help, no matter how courteous or professional they seem. Politely or impolitely walk or run away. Hang up the phone. Ignore their texting. Rip apart their letters. They are crooks of the worst kind because they're posing as someone who wants to help. At least you knew where you stood with Jaws.

Geoff Williams is a regular contributor to FrontDoor.com.

BACK: The gist of Obama's plan >>

More...

• What You Need to Know About Obama's Stimulus Package
• Obama Offers Housing Help in Economic Stimulus Package
• Rescue Programs for Homeowners
• Fighting Foreclosure Guide
• What to Know Before You Refinance

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