I'm in an option ARM and am looking into a couple of options to get out.

1) Qualifying for the Hope for Homeowners program

2) Working with a broker to have a loan negotiating company re-negotiate with my lender.

What are the pros and cons of each?

This is an easy one to do. Over 80% of option arm loans have RESPA violations I refer my clients that are in bad loan situations to a firm in San Diego that is the top modification firm. They use forensic document review of loan documents and find flaws and violations then their attorney negotiates with the lender and pressures the lender into reducing and locking the rate as low as 2-3%. They also have had 2nd mortgages completely waived or settled for pennies on the dollar. Even if there are no violations they can get the lender to put you in a fixed loan at a low rate. You can get more information from: loanmodificationresources.tk Good luck!

My husband and I got a loan modification which saved us from a recasting Option ARM.

Make sure you have enough equity before paying for an appraisal... You can find out for free whether you're upside down or not by checking with a realtor first.