ROCKFORD (WIFR) -- The new refinancing option requires banks to write down at least 10 percent of the unpaid principal balance of the first mortgage.

Local mortgage expert Dave Adkins expects there to be a lot of interest amongst local borrowers.

But since participation is voluntary, the catch is convincing your lender to sign on.

"Your going to have to convince them that by reducing the principal balance of the loan, they will at least get paid something for their loan or cause you to go into default or ultimate foreclosure. I'm not sure how many other lenders are going to agree to reduce the principal balance of a borrower that's completely current and has the ability to re-pay."

To qualify, Your mortgage must be in a negative equity position.The property must be your primary residence.Your existing loan must not be an FHA-insured loan.