I wanted to share an example of how one area of avoiding foreclosures would help homeowners, which I don't believe the lenders wish to do, actually.  We have a 15 year fixed loan with GMAC, investor Fannie Mae.  Over the last several months, due to two job losses between my spouse and myself, I have requested GMAC to consider letting us change to a 30 year vs. 15 year.  We could keep current if allowed to use this option.  No go.   I was told to default and maybe they would work with us, key word maybe, not to mention destroying our credit.  Recently, Fannie Mae has implemented an early workout program for homeowners current on their loans but stressed financially.  GMAC claims to be working with Fannie Mae, and yet, I have sent in all documentation for this program option and still, here we are with no reply.  I called again yesterday and was told I would hear something in 3-6 months.  It seems sanity and common sense are lost in these trying times.  We are in CA so refinancing is not an option, even if they were lending, as everyone where I live has seen their house values drop, in our case from $550k (silly, I agree) to $195, maybe.  Just wondering if any one else has encountered this type of stonewalling.  Best to all.