LYNN – Help is on the way for homeowners facing foreclosure due to adjustable rate mortgages on the way to avoid falling behind on payments, according to an announcement made Thursday.Five banks have created the Mortgage Relief Fund to assist New England homeowners with a $125 million fund to refinance mortgage loans for those facing interest rate increases.The goal of the program is to shift borrowers with reasonably good credit histories into more affordable mortgages.An estimated 38,000 borrowers in New England could match the program’s eligibility criteria with 15,000 in the state, according to research by the Federal Reserve Bank of Boston, which helped arrange the program.Participating banks include: Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank and Bank of America. Officials say the fund could be expanded if other banks decide to sign on.David Hughes of Century 21 Hughes at 319 Broadway said the program is great for those who can take advantage of it before they lose their homes.”I think this will definitely benefit both the neighborhood and the economy, and it’s a nice Christmas present as well,” he said. “It’s not a good feeling for the people who might lose their homes, but this news is a good thing.”The program is not designed for borrowers who are delinquent on their mortgage payments or facing pending foreclosure.Those eligible for the program would have to have their home be worth more than the total of their mortgage loan balance; have paid mortgage payments on time; reside in the property and can document current income.Hughes said when people end up losing their homes it ultimately affects others around them.”This may help to change things around,” he said.Federal Reserve Bank of Boston President and Chief Executive Eric Rosengren said the program may not be the whole answer, but it’s definitely a start.”The initiative offers genuine help to a subset of borrowers who are at a perilous juncture with their mortgages,” he said.Rosengren said eligible borrowers could arrange new loans with the five banks under terms similar to those offered to borrowers with generally strong credit, with potential savings of hundreds of dollars in monthly payments.Participating banks will be able to limit their credit risks because of loan guarantees extended by the Federal Housing Administration, as well as state programs to protect lenders in case a borrower defaults.Mike Connor of Connor Real Estate at 137 Euclid Ave., said the fund would eventually trickle down to helping the real estate industry.”Anyone that is helping people helps the industry as well,” he said. “This is a really good, positive thing.”For more information, visit www.mortgagerelieffund.com