$1.5 billion in housing help for unemployed, underwater borrowers

President Obama recently announced a $1.5 billion program to help borrowers in states that foreclosures were highest: California, Arizona, Nevada, Florida and Michigan to fund programs to prevent foreclosure for people who are unemployed or who owe more than their homes are worth.

The money is planned to go to state agencies that can assist homeowners having trouble securing loan modifications because of second liens, as well as promote affordable housing opportunities.

However, how the effort will help people remains to be seen. The administration did not provide many details on the state agencies' programs, saying it was leaving it to them to come up with the solutions. At least three of the agencies, in Florida, Arizona and Michigan, were surprised by the announcement and are still assessing how they will utilize the money.

The move is the administration's latest attempt to fix its signature foreclosure-prevention effort, as known as the Home Affordable Modification Program, which has been widely critized for not doing enough to help distressed homeowners.