Yesterday, Barack Obama and his administration unveiled a new foreclosure prevention plan. They estimate that as many as 9 million people could be helped by this plan. But I've had this question from several readers:

Well, fully fleshed details haven't been released (and they won't be until next month), but you can start preparing to apply for the foreclosure prevention plan benefit now.

Step 1: Talk to your mortgage lender

It is worth noting that the foreclosure prevention plan will only affect those whose loans are serviced or guaranteed by Freddie Mac or Fannie Mae. Since this covers nearly half of all home mortgage loans, there is a fairly decent chance that this includes you. Even if Fannie or Freddie isn't on your home loan papers, your bank may have your loan guaranteed by these government sponsored institutions, so you should talk to your mortgage lender.

If your home mortgage loan is, in fact, serviced or guaranteed by Freddie or Fannie, you can start figuring out whether you qualify for the foreclosure prevention plan.

Step 2: Do you qualify for the foreclosure prevention plan?

There are two main programs as part of this plan. The first is meant to help those homeowners with less than 20% equity, or who are underwater (up to 5% more than the home is worth). These folks may have made good decisions, and may be able to afford their mortgage payments right now, but they may be concerned about getting a better deal through refinancing. The second program is aimed directly at those who could be in danger of foreclosure if they do not get an affordable payment soon.

Mortgage lenders will be encouraged to offer lower interest rates or extended payment plans to help borrowers keep their mortgage payment to 31% of their income. Lenders can also lower the principal to achieve this — but I wouldn't hold my breath for that to happen.

If the property is an investment property, though, you do not qualify. This plan is aimed at those who live in their homes — and special precautions are being taken to help see that this plan doesn't benefit real estate flippers.

You should get your information together — tax info, pay stubs, etc. and check with your lender to let them know you plan to apply when it becomes possible next month.

What you might get out of the foreclosure prevention plan

For the refinancing portion of the foreclosure prevention plan, you can refinance to a 30 year fixed or a 15 year fixed loan at current rates. For a 15 year loan, that is 4.81%. Pretty good, eh? Balloon payments and prepayment penalties can't be included, though. Also, there is an incentive plan: If you stay current on your mortgage payments after loan modification, you could receive $1,000 a year for five years — applied to the principal of your home mortgage loan.