This is a circumstance for so many homeowners right now where their mortgage may be much higher than the value of their home. There are a number of opportunities, however, to refinance and modify the conditions of your mortgage that recently went into effect. Although I can't speak directly to whether this particular person would be eligible, I would encourage all homeowners to visit http://www.makinghomeaffordable.gov to consider whether they may be eligible to refinance or modify the terms and conditions of their mortgage.