Last week, The Obama-administration approved plans to help five different states, California, Arizona, Florida, Michigan, and Nevada, who have been hit particularly hard by the housing bust.  These five states were selected because they have experienced a 20% or more decrease in home prices.  State agencies have individually worked on designing the plans, so they vary from state to state, but the plans are all aimed at: helping borrowers who have lost their jobs continue to make their mortgage payments; canceling second mortgages that are preventing struggling homeowners from receiving loan modifications; and helping homeowners pay overdue mortgage bills.  According to proposals from state housing finance agencies, California will be the largest recipient of the funding and will receive nearly $700 million, which will help an estimated 46,000 struggling homeowners. 

For more information, check out this article from the LA Times.