Are you having trouble paying your current mortgage payment?

Has your home decreased in value, and you're wondering if you should continue to pay the current mortgage payment?

Do you have a FNMA or FHLMC loan? Then you may want to talk to your current mortgage company about what is commonly called the Obama Program.

The actual name of this program is the Homeowner Affordability and Stability Program or HASP, but many people refer to the program by its slang title, the Obama Plan.

Six weeks after President Obama took office, he and Congress enacted this program. It is specifically designed for government-backed mortgages, which are those where the investor is FNMA or FHLMC. (The investor for your mortgage is that individual, organization or entity who provided the funds of your original mortgage balance. Simply put, the investor is who provided the money for you to give to the seller when you bought your home.)

Qualify NOW!! For Obama Loan Modification Program >>

Some private investors (those who are not FNMA or FHLMC) have also agreed to participate in a program that is similar to HASP, which can be good news for you if your investor is not Fannie Mae (FNMA) or Freddie Mac (FHLMC).

To apply for HASP, your home must be your primary residence. It cannot be an investment property (rental property) or second home (like a vacation home).

The program does nothing to lower your principal balance, so if you're wanting the investor to re-do your mortgage based on current market value, forget it. After all, when you bought your home, you did receive a check for the amount you needed to buy the home, right?

You can look at this like buying a car. Everyone knows when you drive your new car off the car lot, it drops in value immediately, sometimes by thousands of dollars. But you still continue to make the payments, don't you? This is because you agreed to make the payments, no matter what the value of the car is. See the connection?

There are two aspects to HASP: one is the modification portion, for people who are behind on their mortgage and are dealing with a hardship that may continue for some time -- reduced income, illness, or other difficulty. The other aspect for HASP is the refinance section. This is for people who are current on their home loan now but foresee they may experience difficulty in the future. Feel free to contact your current mortgage lender to see if you may qualify for either of these aspects of the Obama Program.

Be prepared to give your mortgage lender current income and expense information. This program is based on where you stand financially, and no, not all people will qualify. You do have to be bringing in income! Don't expect a handout. The program is designed to give you some relief now so that you can get back on your feet, but it will not provide you with a $500 mortgage payment on a $500,000 home. Be realistic.

Your lender will conduct a financial interview to see what you may be able to afford, and be prepared to send in proof of the information you provide. Some lenders are able to set up the program for you right over the phone. If you're experiencing financial difficulties, HASP may be right for you.