Have originated your mortage before January 1, 2009

Be an owner-occupant.

Have an unpaid balance that is equal to or less than $729,750 (for a single-family home) 

Have trouble paying your mortgage due to financial hardship. That could be because you have had an increase in your mortgage payments, or because your income was reduced or you suffered a hardship (like medical problems) that increased your bills, or, you can show that you soon will be unable to make your payments. You will be required to enter an affidavit of financial hardship.

Your monthly mortgage payment must also be more than 31% of your gross (pre-tax) monthly income.

You must successfully complete a three-month trial period at the modified rate to seal the deal. That means, YOU must make all payments on time, to keep the lower rate fixed for five years.

Am I Eligible if I Owe Way More Than My Home is Worth?

Yes, you might be eligble if you owe more than the value of your home. This is not an issue for this program. 

What If I am About to be Foreclosed On? 

The foreclosure process will stop while you’re being considered for the program (or for any alternative foreclosure prevention option). 

What Will it Cost? 

NOTHING. Under the program, the borrower does not have to pay any charges or fees. Any fees are supposed to be paid by the company that holds the loan, and the servicer of the loan will pay for your credit report. 

What’s in it for My Lender? 

The lender will get a an incentive fee of $500 for each modification they do. Once your lender modifies your loan, they’ll be paid a $1,500 incentive. 

What's The Deadline?

New borrowers will be accepted until Dec. 31, 2012. 

What Do I Need To Do? 

Gather these required loan modification documents and call your mortgage servicer (the company you make payments to). Your servicer is not required to join the program, but the government hopes that the incentives, along with the fact that this could help millions avoid defaulting on their mortgage, will motivate them to participate. 

You can find more detailed information at financialstability.gov.