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According to a recent story in USA Today, homeowners applying for mortgage modifications under the US Department of Treasury's Homeownership Preservation Office will need paperwork up front at the time they apply for the modification instead of first doing things over the phone.  To speed up the process of getting into the modification program sooner to lower monthly payments on a permanent basis, borrowers should have these documents with them prior to making the formal application with their lender:

1. Two most recent paystubs
2. An electronic form that allows a servicer to pull up a tax return online
3. Hardship letter in request for mortgage modification

The goal of the program is to qualify up to 4 million borrowers into the program that will result in lower monthly payments through 2012.  Homes must be owner occupied to qualify and the housing debt expenses need to be greater than 31% of the owner's income.  The end result of the home modification is a lower interest rate or an extended term of the loan and in some cases both.  Median savings as a result of the lower interest rates and the longer terms have been around $500.00/month.  After a 3 month trial phase of making on-time payments, homeowners enter into a permanent modification phase.