Here is an article from the USA Today that I thought you might find interesting about "Loan Modifications". In my recent experience with the governments loan modification program, I find this article to be very accurate in that most people are having a hard time getting their modifications approved.
Getting help through the Obama administration’s mortgage-assistance program has been an impossible challenge for thousands of applicants.
Home owners who apply for mortgage modifications can expect to wait 45 to 60 days before hearing anything from their mortgage service company, according to a report from foreclosure-prevention counselor NeighborWorks America.
Here is some other basic information:
The refinancing option is available only for certain loans owned or securitized by Fannie Mae and Freddie Mac. Home owners should contact their lender to see if they're eligible. Borrowers who are delinquent on their mortgage will not qualify.
To be eligible for a modification, borrowers must live in their property and be able to pay the mortgage after the modification. The first mortgage may not exceed 105 percent of the current market value of the property. The unpaid principal balance must be equal to or less than $729,750 for one-unit properties. The loan must have originated before Jan. 1, 2009. A borrower must have a payment (including taxes, insurance and homeowners association dues) that is more than 31 percent of the borrower's gross monthly income.
Consumers can find more information about these programs at FinancialStability.gov.
Source: USA Today (06/19/2009)