FHASecure expands the number of borrowers eligible for FHA- guaranteed loans to include homeowners in default. FHA borrowers take out loans from about 8,500 qualified lenders, paying an added insurance premium. Their monthly payments are guaranteed by the Federal Housing Administration, which covers defaults from the pool of insurance payments, using no taxpayer money. In addition to not missing any payments before their mortgages reset and having at least 3 percent equity in their homes, eligible borrowers must have a job and the income to cover the payments, said Steve O'Halloran, spokesman for the Department of Housing and Urban Development, which oversees the FHA.

Current Foreclosure Crisis Deemed the Worst in U.S. History