The federal program offsets some costs for banks that agree to modify mortgages.
Even if lenders do agree to modify loans, many Americans will still be in trouble.
Countrywide, which services his loan, would not agree to modify the loan but was willing to accept the short sale.
Under that law, servicing companies that agree to modify loans receive some protection from liability arising from the loan changes.
The eagerness with which lenders agree to modify loans is likely to be affected by a bill that the House is expected to take up on Thursday.
Senior United States officials have even raised the possibility of withdrawing from the accord if the Russians refuse to agree to modify the treaty.
Under the plan, the government offers mortgage companies $1,000 for each loan they agree to modify, then another $1,000 a year for up to three years.
Dec 2015 More than 90% of Rwandan voters agree to modify the constitution by removing the presidential two-term limit, potentially allowing Kagame to rule until 2034. 1 Jan 2016 Kagame announces he will stand for a third term in 2017.
And unless the Russians drop their objections and agree to modify the 1972 Antiballistic Missile Treaty to allow a limited defense, President Clinton will have to consider withdrawing from the accord.
Meanwhile, John R. Bolton, under secretary of state, told a Moscow interviewer that Washington wanted Russia to agree to modify the treaty soon or else Vladimir V. Putin and Mr. Bush would have nothing to talk about in Crawford, Tex., in November.
Mr. Netanyahu has said Jerusalem's future can be a topic of negotiation with the Palestinians, but the Israelis say that at no time did the government agree to modify its policy on Jerusalem as part of indirect talks.
