Your neighborhood soon the be devalued while if you haven't defaulted, you will pay more than your neighbor for your house... And end up selling at a loss. Or as a taxpayer, you will now get to help pay for your neighbors house... And I mean the neighbor who truly could not afford the house in the 1st Place!

(March 25) -- The Obama administration plans to expand a program aimed at helping troubled mortgage borrowers by providing new loans to people whose homes are worth less than they owe and awarding banks and other lenders incentives to give breaks to people who are behind on their mortgages.

Some details of the plan were emerging today as the government said more than half of borrowers whose loans were modified in the first quarter of 2009 had already defaulted again by the end of the year.

The Obama administration plans to expand a program aimed at providing new loans to mortgage borrowers whose homes are now worth less than they owe. Here, Tracy Munch collects some belongings Feb. 2 after the bank foreclosed on her home in Adams County, Colo.

The Office of the Comptroller of the Currency and the Office of Thrift Supervision said 51.5 percent of loans helped by the Home Affordable Modification Program, or HAMP, at the start of last year were more than 60 days overdue by the end of December. The program, one of President Barack Obama's first efforts to help the economy when he took office, was aimed at stabilizing the housing market and helping borrowers keep their homes by working with banks to lower mortgage payments and the principal owed on homes.

Assistant Treasury Secretary Herbert Allison told Congress that nearly 1.4 million borrowers had been extended modification offers, with 1.1 million having their payments substantially reduced. But so far only 170,000 were able to get permanent relief.

"While significant progress has been made in the first year of program implementation, the administration continues to work closely with homeowners, mortgage servicers, housing counselors, elected officials and other key stakeholders to strengthen program implementation and broaden the program's impact," Allison said in testimony before the House Oversight Committee.

But the report on mortgage activity said that while new foreclosures were down in the fourth quarter, mortgage servicers "report that they expect new foreclosure actions to increase in upcoming quarters as alternatives to prevent foreclosure are exhausted and a larger number of seriously delinquent mortgages slip into foreclosure."

"The home foreclosure crisis is growing unabated," House Oversight Committee Chairman Edolphus Towns said ahead of Allison's testimony. "For the homeowner who is underwater, the economic crisis certainly isn't over."

Facing criticism about its inability to reverse the foreclosure problem, especially from fellow Democrats, the White House plans Friday to announce changes to HAMP that would vastly increase aid to people in danger of losing their homes.

People briefed on the changes told The Associated Press the administration will dedicate an additional $14 billion from the $75 billion of the Trouble Asset Relief Program already allocated to prevent foreclosures.

That money will bolster efforts by the Federal Housing Administration to give new loans to people who owe more on their homes than the homes are now worth, the AP reported. And it will be available to the 100 mortgage companies participating in HAMP so they can reduce the the principal owed on homes and allow tardy borrowers to catch up on their payments.