Borrowers who took subprime adjustable rate mortgages (ARMs) after January 1, 2005, which have interest rates scheduled to reset before July 31, 2010, may be eligible for a modification under the "Fast Track Solution". This is a voluntary program developed by the Government and several trade groups.

Borrowers eligible for a modification are those who have good mortgage payment records but do not qualify for a refinance because of poor credit, insufficient equity or other reasons. They also must occupy the home as their permanent residence. The modification consists of a 5-year freeze on their interest rate.

Borrowers are not likely to find the term "subprime" on any of the documents provided to them when they took out their ARM. Probably the best indicator is the margin, which is the amount that is added to the interest rate index on a rate adjustment date, to generate the new rate. If the margin is 4% or higher, it is safe to assume the loan is subprime. The margin is shown in the note.

If you are eligible under the Fast Track program, it is a good idea to say so in the hardship letter submitted to the loan servicer. Servicers don’t receive any money from the Government to make Fast Track modifications, and since they are generally unwilling to modify loans currently in good standing, they just might overlook it.