The Obama administration launched their effort to help families at risk of losing their homes today and officials estimate the plan will help up to four million people avoid foreclosure (losing their home). The plan is also the most ambitious attempt since the Great Depression of the 1930’s to help troubled homeowners.

The downside? It will cost taxpayers about $75 billion.

The plan is much bolder and much more expensive than any of the Bush administration’s attempts to help homeowners from losing their homes when the economic trouble began.

And it’s not only low-income families that will be getting help – people with higher mortgages could qualify for help because there is no cap on how their income can be. As long as they are in danger of losing their home, the Treasury Department’s plan is intended to help them.

One of the main parts of the plan is to make the size of a person’s monthly mortgage payment smaller. Mortgage lenders (like banks and mortgage companies) are being asked by the Obama team to lower the monthly rates and in return, they will be reimbursed by the government.

The program is open only to borrowers who actually live in the homes that they risk losing, and not to investors or to people with mortgages on second or third houses. Homeowners can apply for this help until the end of 2012.

What do you think of the plan? What else can Obama do to help keep Americans in their homes and at work? Let us know, comment below!