Check out Hope for Homeowners, a Federal govt program designed to help people like you. See the link below.
Here is a brief synopsis:
Homeowners, contact your existing lender and/or a new lender to discuss how you may qualify for the H4H program.
The list of participating lenders is not available yet. We will publish it in the coming days.
The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. H4H is an additional mortgage option designed to keep borrowers in their homes.
The program is effective from October 1, 2008 to September 30, 2011.
As many as 400,000 homeowners could avoid foreclosure through this program over the next three years. If you are having trouble making your mortgage payments, HOPE for Homeowners may be able to help you, by refinancing your loan into a new 30-year fixed rate loan with lower payments.
How the Program Works
There are four ways that a distressed homeowner could pursue participation in the HOPE for Homeowners program
1 Homeowners may contact their existing lender and/or a new lender to discuss how to qualify and their eligibility for this program.
2 Servicers working with troubled homeowners may determine that the best solution for avoiding foreclosure is to refinance the homeowner into a HOPE for Homeowners loan.
3 Originating lenders who are looking for ways to refinance potential customers out from under their high-cost loans and/or who are willing to work with servicers to assist distressed homeowners.
4 Counselors who are working with troubled homeowners and their lenders to reach a mutually agreeable solution for avoiding foreclosure.