Some banks have taken it upon themselves to help borrowers - figuring it's better to modify a loan than to let it crash and burn. With home prices down nationwide, foreclosure is less attractive to banks than it ever was before.
Lawmakers rolled out several government mortgage help programs as well, hoping that incentives will prod lenders to wade through a complex world of loan servicing and ownership. However, they've evolved over time, and each one seems to target a different subset of homeowners. Critics say some of the programs are not effective (or unfair to taxpayers) and borrowers who try to use them can't get answers.
The best way to make progress if you're in trouble is to talk to a HUD-approved counselor. They know which programs may be a fit, and what "language" to speak with lenders. You can also contact your lender directly, but in some cases they are unaware of how the programs work.
Further reading:
Here in the UK the banks have been particularly slow to help borrowers who get into difficulty. The problem is that they have announced a mortgage rescue package but didn’t include the lenders who need it most, the sub prime mortgage lenders!