One million or more homeowners could avoid foreclosure as part of plan by the U.S. Treasury Department.

Citing housing market executives, Bloomberg reported that the proposal is aimed at promoting modifications of delinquent or defaulted home loans. The plan would also include write downs of principal balances by bringing new private capital into the market.

The plan, which could unlock the so-called private-label notes that account for about 20 percent of the $6.8 trillion in mortgage-backed securities outstanding, would apply to mortgages that are bundled into mortgage-backed securities not issued by government agencies.

“This is not a silver bullet, but it is one of the tools that should be used,” said James Lockhart, who once oversaw regulation of mortgage companies Fannie Mae and Freddie Mac. “We think this would be a way to stop some of the foreclosures, help stabilize neighborhoods and help save some families.”

In the first quarter, nearly 11 million U.S. homeowners were “underwater” on their mortgages, meaning their properties were worth less than the amount they owed.