"Interest rates have dropped so far, they can make a significant difference in a monthly payment that can keep somebody in their house," said John Sellek, spokesperson for Attorney General Bill Schuette.

But low interest rates mean nothing without a bank willing to refinance your loan.

"If the property value does not make up for what the loan is currently, that's where people run into difficulty," said Brad Ward, director of public policy and legal affairs for the Michigan Association of Realtors.

The good news is five major mortgage servicers--Chase, Bank of America, Wells Fargo, Citigroup, and GMAC/Ally--have agreed to fund a refinancing program. That commitment comes as part of a multibillion dollar nationwide settlement Michigan signed onto Tuesday, John Sellek, spokesperson for Attorney General Bill Schuette exlplains.

"They will take people who are in these underwater loans, and refinance their loans, where today they may not have done so. Hopefully that will keep people in their house a lot longer and get through this crisis and ease the crunch on the housing market," said Sellek.

Relief desperately needed, says Ward.

"Refinancing a lot of the folks underwater lends stabilization to the housing market and as soon as we can stabilize the housing market, we can start returning to good economic times here in the state," Ward said.

Now that these major banks are on board, the Sellek says there's going to be an effort to recruit smaller institutions as well so more people will be eligible for refinancing help.

The settlement would also mean cash payments of about $2,000 to people who lost their homes to foreclosure between 2008 and 2011, Sellek said.

And keep in mind--this isn't a done deal and still needs approval from a federal judge. Meanwhile, the settlement is still being negotiated with hopes that more states will join it.

Sellek expects relief to start reaching people anywhere from in a few months to late this year.