The Obama Administration is looking to expand their $50 billion plan with a new program which will help people facing foreclosure by allowing people to modify their second mortgage or piggyback loans.

Much like the other plans they are offering cash incentives to lenders who agree to reduce the monthly payments or forgive the loans entirely.

Millions of home buyers took out second mortgages to purchase homes with little to no down payment or to pay home improvements, but those second-lien mortgages have to be negotiated separately. This often makes it more difficult to modify primary loans. This could be a good step forward for home owners.

The Obama administration has promised to take on the overwhelming number of foreclosure scams that have cropped up all over the U.S. There are already many open cases being investigated, and they are putting the word out to people who may be in danger of this scam

According to LATimes.com “Illinois’ Madigan said the surest way to identify a potential scam artist is if the company asks for a fee up front after making big promises about being able to get a homeowner out of trouble. Such fraud has gone on for years, Madigan said, and Illinois, along with Maryland and Minnesota, are on the forefront of prosecuting cases and enacting laws that prevent mortgage assistance companies from collecting fees up front.”

Foreclosures continue to rise despite the large increase in numbers of loan modifications. In February nearly 250,000 homeowners received either loan modifications or repayment plans from their lenders according to Hope Now.