For those looking at home foreclosure and need help, as it stands, out of the approximately 1.5 million homeowners offered home mortgage workouts by the Hope Now Alliance program instituted by the federal government, only slightly more than one in four were offered loan modifications, with additional charges and fees attached. Hope Now only applies to subprime, adjustable rate mortgages.

Another new program, Project Lifeline, in its entirety, is a program wherein six major lenders agreed to give some homeowners an additional 30 days to catch up on their payments, but made no allowances for loan modification.

Currently, bankruptcy law gives the courts authority to modify loans on commercial real estate, family farms, and even yachts. Residential homes are not included.

The Hope Now Alliance program is for first liens on owner occupied residential adjustable rate loans (ARMS) that had a fixed rate for 36 months or less, and these loans must have been taken out between 1-1-05 and 7-31-07, with reset dates between 1-1-08 and 7-31-10.

Under the Hope Now Alliance program, the mortgage company or lender is expected to contact the homeowner 120 days prior to the reset date, and this program is divided into three segments.

Below are the qualifications for the Hope Now Alliance program in as simple terms as the government documents will allow - these are the main points (abbreviated version):

Segment 1

Loans where it appears that the borrower will be able to refinance some available option, such as FHA, FHA Secure loans:

• The mortgage company or lender is to make determination based on LTV (which means mortgage amount versus the appraised value of the property), loan amount, FICO and payment history and generally won't have to determine current income to determine eligibility for refinancing.

• Second liens are not covered, other than notifying the second lien- holders that they should agree to adjust their interest rate to the rate of the refinanced first lien.

• The mortgage company or lender may evaluate loans on case by case basis or apply servicing standard in Public Securities Association Standard Prepayment Model (PSA).

• The mortgage company or lender is required to use all available avenues allowed by PSA to assist in refinancing.

Segment 2

Will include current loans where borrower is unlikely to be eligible for any other type of financing:

• Not more than 30 days delinquent and not more than 60 days delinquent in last 12 months or not more than 90 days delinquent.

• Loans with loan to value (LTV) greater than 97% would be eligible under Segment 2. If LTV is below 97%, The mortgage company or lender can obtain updated home value.

• Current loans that don't otherwise qualify for FHA are also within Segment 2 unless the mortgage company or lender can determine the homeowner qualifies for some other type of loan.

• The mortgage company or lender is to determine the owner occupancy and FICO score changes since the loan was originated.

• If FICO score is greater than 660 or current FICO is 10% or more higher than at origination, the borrower has FAILED the FICO test and the mortgage company or lender will then use a more detailed analysis to determine borrower's current income/debts.

• The mortgage company or lender must determine if payment after reset will go up by more than 10% if this amount meets the FICO test or if this amount failed FICO test, and is an amount that the mortgage company or lender determines borrower cannot afford.

• Borrowers eligible for Segment 2 are eligible for a modification that freezes the interest rate for 5 years.

Segment 3

Loans where borrower is not current could not meet the introductory rate. A refinance would not help them:

• The mortgage company or lender is to determine appropriate loss mitigation (loss mitigation - allegedly a process to avoid foreclosure) and can include forbearance, short sale, and foreclosure.

There are no apparent options in Segment 3.

These are very limited programs, with no assistance for the homeowner with a fixed rate mortgage.

When in a foreclosure situation, your best chance at coming out of your foreclosure successfully is to be very well informed as to what your options are, and then making the best decision on a course of action that will work for you.