The Treasury Department announced March 12 that the government’s rescue program for underwater homeowners had over one million participants in February, up 6%  from January.

Refinancing rates can be as low as 2% and in some cases borrowers can get a temporary deferral of principal payments.  The median reduction in monthly payments for borrowers is over $500.

As of February 28 169,000 households had permanent loan modifications  and another 835,000 were in the trial stage.  A modification is deemed permanent after a borrower makes three monthly payments.

Even after modification the median ration of monthly debt payments — including credit card and other debts — to pre tax household income was 60%.  This indicates that even if your overall debts are huge relative to your income, you can qualify for mortgage relief.