If you recently lost your job or had a wage cut, then undoubtedly you are probably having more trouble keeping your finances afloat. Even if your whole family is working, one lost income is a huge dent. After awhile, the bills might start piling up. At first they are only late, and then some get missed. Your mortgage bill may just sit on the counter or table for a little while until you decide what to do about it because the funds aren't there.

This sounds like a case for the Federal loan modification program. If you are having trouble making ends meet and that mortgage payment is really putting things over the edge, then you could qualify to participate with millions of others in the same situation. If your loan was taken out before January of 2009 and it is on your current primary residence, you have just fulfilled the first two requirements. For a one-unit house, the principle on the loan must not exceed $729,250. For more units, the amount will increase.

A very important point here is that you must be able to prove that you need the help. Gather all of your documents concerning income, loans, debt and other related matter before applying because you will be asked to give evidence of your circumstances.

When you get approved for this program, there will be a lot to celebrate: a lower monthly payment and reduced principle all compliments of the government, plus a dropped interest rate. It is great program to be a part of and will do you a world of good.