You heard incorrectly. The government is offering assorted help programs for those who may LOSE their homes due to taking adjustable rate mortgage loans and similar. However, the government isn’t in the business of absorbing equity losses when values fluctuate. I assume you would not be pleased if our government demanded $35,000 in equity from you if your house had increased in value. It works the same way in the other direction.

buddy….there are many refinance program online sources where you can get full of information and also get the refinance loan at lower mortgage interest rates and reduce your negative equity…i have the source where the option of existing loan modification and low interest rates :

Dude if your going to live in the property and can afford the payment, which you should be able to since you just got the loan, don’t even worry about the value. You people think that you lost thousands when all that is happening is a correction in the market and all you have Truly lost is on paper (until you sell) is when you lose. Stop whining and go to work. Anyway you bought AT a terrible time and the values still have not hit bottom. That was your mistake.