GMAC mortgage

I was wondering if someone could help me help my sister. She lives in FL and has her home loan through GMAC. She is current on her payments right now. But is trying to redo her loan. GMAC will not help her and sent her a letter telling her she does not make enough money to stay in her home and they suggest she sell it. Like thats gonna happen. So now she is thinking about not making her payments. She did lose one of her jobs and thats the reason why she doesn't make enough for them. Other people in her town have not made payments on their homes for 18 months to 2 years and they are still in their home, only because they have a for sale sign in their yard. She really doesn't want to lose her home but it has dropped so much in value that she is now upside down on her loan. She used to have almost $200,000 in equity. Plus she stuck so much time and money in remodling. The thing that sucks is GMAC got billions of dollars from the government as a bailout and was asking for more. But they cannot help out the homeowners who the money was supposed to help them stay in their homes. I don't want to see her lose her house. So any suggestions would be helpfull.

Sorry I guess this was a vent also

She can check with the lender if they approve of HAMP or Home Affordable Modification Program. The lender would certainly check her income criteria before approving a refinance. Hence, if she has experienced a recent pay cut or became unemployed then she might not meet the qualifying criteria for refinance.

How much equity does she have on the property now?

She said that with the housing market her house dropped in value and she is now even. So she has no equity