On December 4, Treasury and HUD announced changes to Making Home Affordable (MHA) to better assist struggling homeowners. The changes are designed to motivate homeowners in MHA to continue making timely mortgage payments. The program was originally established in 2009  to provide relief to homeowners facing financial hardship.  Under the revised guidelines, all homeowners in the program will now be eligible to earn a principal reduction of $5,000 in the sixth year of their modification, which will reduce their outstanding principal balance by as much as $10,000 in total. In addition, Treasury and HUD will provide additional assistance to homeowners who surrender their houses through a short sale or deed-in-lieu.  Treasury  Release.  HUD Release.