NEW YORK (CNNMoney.com) - The Obama administration is widening its mortgage refinancing program to allow more borrowers hit hard by falling home prices to take part.
Borrowers whose loans are now worth up to 125% of their home's value are now eligible to refinance their homes under the Obama foreclosure prevention plan announced in February. Previously, the limit was 105%.
The move acknowledges that home prices in many areas have fallen so far that many people were shut out of the program. Some 67% of homeowners in Las Vegas - one of the hardest hit areas where Housing Secretary Shaun Donovan announced the expansion Wednesday - owe more than their homes are worth.
"The president's Making Home Affordable plan is already helping far more than any previous foreclosure initiative and with today's announcement we will extend its reach still further," said Donovan.
Some 20,000 loans have been refinanced so far, according to the Treasury Department.