Questions and answers about the Hope for Homeowners Act of 2008, passed by Congress last weekend to try to steer as many as 400,000 struggling homeowners away from foreclosure:

Q. What exactly will the legislation do?

A. It will allow those who qualify to cancel their old mortgage loans and replace them with 30-year fixed-rate loans for up to 90 percent of the home's current value. The FHA will insure a total of $300 billion of the loans over a three-year period.

But the decision on whether to write such a loan remains up to banks, which would have to be willing to take a loss on the existing loans in exchange for avoiding an often-costly foreclosure.

Q. Who is eligible?

A. Eligible borrowers must have spent more than 31 percent of their monthly incomes on their mortgages as of March 1, 2008. The troubled loan must have originated no later than Jan. 1, 2008, and be on the borrower's primary residence. And the borrower's income must be verified.

Q. When does the program start?

A. It takes effect Oct. 1 and runs through September 2011, although the FHA isn't likely to have it operating at full capacity until next year.

Q. Since lenders can pick and choose which loans to refinance, how can consumers determine if theirs will be selected?

A. Check with the bank or financial company servicing your mortgage, but it may be weeks before they make decisions concerning the new guidelines and assess individual loans. But even then, keep expectations limited.

"Servicers are going to be reluctant to take the government up on their offer," predicted Mark Zandi, chief economist at Moody's Economy.com. "The earliest they'll start taking them up on it is early next year. And even then it's likely to be modest."

Q. If the banks and lenders refuse to write these loans, then what?

A. Public and political pressure may prompt them to participate. If not, and more people continue to lose their homes, Zandi says the next White House administration (could) subject them to additional regulations or investigations if they remain unwilling to take on the risks.

Q. What happens if I'm able to sell my home after I refinance?

A. You must agree to share any profits from the resale with the government based on a sliding scale, and FHA must be repaid the equity.

Learn more: A summary of the act, www.banking.senate.gov/public/_files/HousingandEconomicRecoveryActSummary.pdf