Beginning in October of 2008, the Bush Administration rolled out an assistance program for homeowners having trouble making their mortgage payment. The Hope for Homeowners Program restructures mortgages for qualified homeowners.
Restructured loans will be based on 90 percent of a homes current value which is established by a new appraisal. What you are accomplishing here is basically a refinance of your home with a 30 year fixed rate 
FHA loan. The maximum loan amount is $550,440 and MIP insurance is obviously required. Additional information can be found at: http://www.hud.gov/hopeforhomeowners/.
What to do: First, contact your mortage lender immediately to try and negotiate lower payments. You need to be persistent; lenders are currently overwhelmed with people in this situation, and tend to work with those in default first. If you are trying to sell your home but can’t get an offer that at least matches what you owe, ask the lender if they will agree to a short sale. This basically means they will accept a lesser amount and may be your last resort before foreclosure. A qualified Real Estate Brokercan explain this process further. Ask your Real Estate Broker to help you with comparables which will demonstrate to the lender that your home is worth less than the unpaid balance.
This is a difficult and trying process. Remember if you are in this situation, you are not alone.
Thanks for the good post. http://www.refinancingcondo.com covers mortgage refinancing topics which may be a solution for current homeowners having trouble with their current terms or rates. Now is a good time to refinance as rates are at a near all time low. Thanks again I will be back and bookmark this site
I agree, if trouble is on the horizon, now is a great time to refinance with rates being so low.