With the foreclosure crisis driving home values lower, banks have begun extending mortgage reduction opportunities for homeowners that reside in high risk regions. This means that is makes more sense for the banks to reduce the mortgage balance for a select group of borrowers than take over their properties via foreclosure. Of course not every borrower will be offered a mortgage reduction, but it certainly doesn't hurt to ask you servicing mortgage company. Many homeowners have retained attorneys in an effort to achieve a principal reduction but for the most part banks are only offering these reduced liens in areas that are significantly underwater like California, Nevada and Arizona. Banks and mortgage lenders are offering mortgage help and loan modifications nationwide, so contact your loan company if you are unable to qualify for a refinance loan.