After the mortgage dilemma a few years back, which caused thousands of people to go into foreclosure, the government initiated plans to assist those who were and are having problems keeping up with their mortgage payments.
The Making Home Affordable (MHA) was initiated to assist homeowners avoid foreclosure and help bring the country back to financial stabilization. HAMP is one of these programs.
You must be at least six payments behind on your mortgage loan (if you are up to date on your payments and just recently fell into hardship, you will not qualify).
You financed the loan before January 1, 2009
Your property is not condemned
Your loan balance is $729,750 or below
You can prove you are in a financial hardship
If you are approved (and it may take 2-3 months), you could have your loan reduced up to $500 and you may receive financial incentives as well. One of these incentives is a principal balance reduction so long as you make the payments on time.
For further information, go to makinghomeaffortable.gov.