Another wave of help is coming form the government and mortgage lenders to help hundreds of homeowners re-negotiate mortgage loans that are held by Fannie Mae and Freddie Mac.

New approach will allow lenders to modify current loans quicker by creating criteria that will be used starting Dec.15.

The new plan calls for borrowers who are more than 3 months behind on their mortgage and would need to owe 90 percent or more than the home is currently worth. The interest rate would be reduced so that the borrower will not pay more than 38 percent of their income on housing expenses via combination of:

Lower mortgage rates.
Reduced principal amount.
Extended term (or duration) of loans
Some combination of the above.

Homeowners would have to apply for a program and their loan modifications won't become final until they have made three consecutive payments.

More than 4 million Americans, or 9 percent of borrowers were behind on their mortgages or facing foreclosure in June.

Citigroup is taking first steps to help homeowners with modifying loans with $20 billion program by refinancing mortgage loans.

Citigroup will reach put 500,000 homeowners that may need help staying current on their mortgage payments. It will also halt foreclosures and work with homeowners who have sufficient income to stay in their homes. If efforts with Citi are made, bank will work with homeowner.

Bank of American said that starting Dec. 1, it will modify an estimated 400,000 loans from acquired Countrywide Financial Corp. as part of an $8.4 billion legal settlement.

Home builder, Toll Brothers said homebuilding revenue dropped 41% and cancellations rose 30% from a year ago due to: "accelerating fears of job losses, a large decline in consumer spending, a significant capital crunch, increased credit market disruption, and plummeting stock market values."

Even with help from mortgage lenders and the government, economy remains extremely troubled. Automakers remain cautions as sales are dropping substantially and they have asked government for bailout plan.

General Motors which saw their shares drop to 60 -year lows would cut 1,900 jobs on the top of 3,600 cuts announced earlier.

Financial sector is not in stable position yet. Credit markets have ease a bit but remain tight for borrowers to get home financing, car financing or other types of loans.  With new plan taking affect on Dec.15 proves the most aggressive strategies from the major retail banks are important steps to fix the housing crisis.