How does the governments hope for homeowners program work?  If you are having a hard time paying your mortgage there are not many great options.  You could do a short sell, let the house go into foreclosure or loan modification.  If you do not fit into any of these categories, you have one last option.  This would be the Hope For Homeowners Program.  It is also known as H4H.  This program began on October 1, 2008 and will run until the end of September in 2011.  This program is the last hope for homeowners by bringing in the federal government who voluntarily will allow a homeowner to refinance under the H4H guidelines.  The H4H program will reduce the size of the mortgage to a max of 90% of the properties current appraised value.  The other condition is that you can only have a 30 year fixed rate mortgage.  FHA will be insuring up to $300 billion of these types of loans.  The only kicker is that you will have to split 50% of the appreciated value for as long as you own the home or pay off the mortgage.  You will not be able to take out a second mortgage under this program unless the money will be used to maintain the property.  For more information please call 888-995-4673 or 800-225-5342.  You can also visit the Hope For Homeowners website at http://www.hopeforhomeownersprogram.org.