Will a Gov't. Loan Modification Plan Work?

Bair said that the 3,500 homeowners who had accepted IndyMac loan modification offers thus far has seen their monthly loan payments slashed by an average of more than $380.

But a new plan modeled on the FDIC's IndyMac efforts wouldn't help all struggling homeowners. Under the IndyMac plan, loans are only modified when doing so proves less costly than pursuing foreclosure.

Of the 60,000 IndyMac borrowers who were delinquent on their mortgage payments, filed for bankruptcy or in foreclosure, 40,000 qualified for loan modifications, Bair told Congress last week.

Lawrence J. White, an economics professor at New York University's Stern School of Business, said that the IndyMac plan recreates "the kind of decision that [an] old-style banker would have made."

"You don't renegotiate all loans," White said. "There are some loans you decide, the borrower isn't going to be able to repay and you foreclose. ... It's a rational decision."

Sen. Charles Schumer, D-N.Y., expressed confidence in the FDIC's work this week.

"The FDIC has had better ideas about how to solve this mortgage crisis than anyone else in the Bush administration," Schumer said in a statement released Monday night. "We hope that the White House will listen very carefully to the FDIC's proposals."

But whether the FDIC has all the support it needs to push through its proposal soon is unclear.

A source who has been following the negotiations closely told ABC News that he did not believe the announcement of a plan was imminent.

Harris, meanwhile, said she's worried that even if a plan is announced soon, it won't help her. She's afraid the government will only seek to help those who are already behind on their mortgage payments.

She's made her payments on time so far, but she's not sure how long that will last.

"I'm sliding toward there," she said. "I'm not there yet."

ABC News' Charles Herman contributed to this report.

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