Obama Offers Homeowners Rescue Plan

President unveils new rules to help alleviate the mortgage crisis.
2:33 | 10/24/11

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Transcript for Obama Offers Homeowners Rescue Plan
Your home and your money tonight with two reports. Starting with the crisis caused by all the houses at risk of foreclosure in this country the states in red have the most homes in need of rescue. Mortgage refinancing. And today the president unveiled a new approach will this save the millions of Americans with homes underwater here's ABC's Jake Tapper. Jan -- Moore has been pulled down by the housing crisis undertow. Her Florida home is worth 250000. Dollars -- mortgage 300000 dollars and the economy has hurt her income. Some most of what she earns goes to pay her mortgage. She and her daughter Kristin who moved home after college or barely making ends meet -- Figure -- in it together. And I'm here for the. The long -- They're still under -- the bank will not even talk to them about refinancing without them putting an additional 40000 dollars on the table. We did try a couple of times to do things and the run around that we got from the bank that first time that was. It was horrific. Today in Las Vegas ground zero of the housing crisis President Obama announced he's changing his underperforming housing assistance plan. Making it easier to qualify for mortgage refinancing. Even if your loan is for more than 145%. Of the current value of your home. As long as you haven't made any recent late payments you take these things together. This is gonna help. A lot more homeowners. Refinance at lower rates but the plan could help some people housing secretary Shaun Donovan says -- Moore and her daughter will likely qualify and could save as much as 3000 dollars next year. The results of president Obama's housing programs have been weak and the crisis has continued to drag the economy down. The housing programs that He announced that they have not delivered the way that He pledged that they -- Why not frankly we've taken a situation that was housing market falling off a cliff. There's no question that it's better than it was and we helped but I think. Where -- being fair is that they haven't gone as far as we had hoped. Diane critics say that this new plan wolf. Be modest and not help as many people as it -- for instance those who have been hit the hardest by the housing crisis those who have missed payments for example. The White House says roughly eleven million Americans are currently under water meaning that their homes are worth. Significantly less than their mortgage -- and eleven million what and number OK Jake.

This transcript has been automatically generated and may not be 100% accurate.

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