The stability part of the plan is designed to help people that are 1 to 2 months behind on their payments; regardless of whether they are underwater.

All of the Treasury Department guidance is on this page. I recommend you check out the Borrower Q & A document, especially questions 16, 18, 21, and 35.

Best wishes and thanks for asking.

1. Reducing your current interest rate (without adjusting the balance you owe).

2. If reducing your interest to 2% APR doesn’t get you to 31%, they’ll consider reducing the principle balance until you reach 31%.

Remember, though, this is just what I’m getting from reading the Treasury Department’s announcements from last week. They will be releasing the guidance today and your lender should have more info very soon. It may not work like I’ve said…especially in areas that have seen drastic price drops.

I would recommend waiting to get a lawyer. With the government’s involvement and guidance, your biggest problem will probably be getting a representative on the phone rather than getting them to consider your situation fairly. They’ll probably want you to fill out a hardship package or update all your income data if you’ve already submitted one, but the process should be pretty automatic, from what I’m reading. Once the guidance come out, all lenders are supposed to review their case files and automatically contact eligible homeowners to begin the process. But they’re already busy and I’m sure this will cause a massive flood of calls, so I would recommend calling them and being prepared to wait on hold a lot.

Here’s the Treasury Department’s release from last week so you can read over it yourself for more info if you’d like… http://www.treasury.gov/initiatives/eesa/homeowner-affordability-plan/FactSheet.pdf. If I understand your situation correctly, you may be eligible for the Stability part of the program rather than the Affordability part.

Also while trying to work out a deal with the bank would I have the same options working with them as if I was to hire a lawyer to speak on my behalf.

It’s pretty likely your bank will participate because if they don’t, they won’t be able to get any more of the government’s bailout money.

So while they don’t have to participate if your loan isn’t through Fannie or Freddie, it’s likely they will.

My question is if the mortgage is not with Fannie Mae or Freddie Mac would the bank be able to help me with this program.

How can I use the Pres. Obama program or any program out there to save my home.

Thanks for all your help.

Your site and information is very helpful, keep up the good work thanks!