With the deepening crisis of home values falling, President Obama introduced a mortgage loan modification program that was one of the biggest assistance programs of its kind.
The goal of the program was to assist struggling homeowners in maintaining their homes and was done in the hope that this would help real estate values to stabilize.

Lenders were to reduce loan payments down to as low as 31% of the homeowner's income.
That could be done by reducing loan payment interest rates as low as 2%, increasing the terms of the mortgage up to 40 years and even forbear on the interest for a set time period.
Basically anything and everything was to be explored in the hopes of reaching a modification that would allow solid homeowners to keep and maintain their home.
So what options do you have for getting a loan modification? To start, see if you qualify for one of the plans and options available.
That means seeing if: • You home is your primary residence? • Did you get your mortgage before 2009? • Is your current mortgage payment greater than 31% of your current income? • Do you owe less than $729,750 on the mortgage? • And are you having trouble paying your mortgage? Once you've determined if you meet the basic criteria, it's time to talk with your lender.
Because, in the end, it is your mortgage lender that will make the final decision as to what type of modification, if any, they will offer you.
When you give them a call, make sure that you have the information ready that they will need.
Here's a list of items that they are going to request: • Hardship letter - Explain what has happened and why you need a modification; • Taxes - One to two years is likely; • Pay stubs; • Financial Statement - List of all income and expenses as well as all assets and liabilities; • Backup documentation for all income, expense and other claims.
Your lender is going to request all of the above documents.
You can either do this on your own or get assistance from a company that help homeowners with loan mod assistance.
When you send them, make sure that you have mail or fax confirmations of them having been sent.
That way when they say they didn't get them or they are missing items, you have proof of the sending.
And finally, have patience.
Getting a loan modification is not going to be a fast or easy process.
It takes time and know-how to make sure that this is successful.
But it can be done and is worth whatever time and effort it takes if you want to keep your home.