1) Know the proposals

Let’s look at the programs that have been proposed. The FDIC has outlined a proposal for mass loan modifications for troubled borrowers. The Federal Housing Finance Administration–this agency oversees mortgage giants Fannie Mae and Freddie Mac–last month introduced a program that would apply to loans owned or guaranteed by those companies. To qualify, borrowers must be 90 days or more behind on mortgage payments and must demonstrate financial hardship. A number of banks have also announced loan modifications, including Citigroup, Bank of America and JP Morgan Chase. Most of these mortgage modification programs cap payments through lower interest rates, longer repayment schedules or reductions in loan balances.

2) Get help

You want to call your lenders loan modification department and explain your situation. Keep detailed records of who you talked to, phone numbers, send a letter outlining your situation by certified mail to customer service and the loss mitigation department. Make sure you investigate government programs too. You may qualify to refinance into an FHA insured mortgage. Consider calling Hope Now at 888-995-HOPE. There are also counseling agencies that can help you. Call a Housing and Urban Development counselor at (800) 569-4287. These counselors may be able to help you if your lender won’t talk to you.

3) Stay on guard

Mortgage delinquencies are set to double next year. And as more homeowners struggle with mortgages, there are even more scams that promise to “rescue” homeowners from foreclosure. These con artists are just charging outrageous fees in exchange for making a few phone calls or completing some paperwork that a homeowner could easily do for himself. And according to the Better Business Bureau, other people-who aren’t even close to foreclosure–are being solicited by companies offering to help them reduce the interest rate on their mortgage loan. These folks are being advised by these companies to stop making their mortgage payments and negotiate a lower interest rate. Bottom line here: never follow advice that tells you to “stop paying a monthly mortgage payment.” Modifying a loan is a process that you can do for free.