About Loan Modifications
Millions of homeowners are struggling to make their monthly mortgage payments perhaps because of an interest rate increase or they have been reduced income.
If you can no longer afford to make your monthly mortgage payments or feel that you may be heading in that direction, you may qualify for a loan modification to reduce your monthly mortgage payments and make them more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.
Am I eligible for a Home Affordable Modification? Answer yourself these 5 questions:
- Is your home your primary residence?
- Is the amount you owe on your first mortgage equal to or less than $729,750?
- Are you having trouble paying your mortgage?
For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)? - Did you get your current mortgage before January 1, 2009?
- Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) more than 31% of your current gross income?
Note: if you are uncertain, click here to determine
If you answered YES to these modification eligibility questions, chances are you qualify for a Home Affordable Modification. Your next step would be to gather the information discussed in the video above and speak to your Lender or a HUD-approved housing counselor.
You can download this information from the Making Home Affordable Request a Modification Page.
Once you have this information, you should contact your mortgage servicer and request that you be considered for a Home Affordable Modification.
If you have missed one or more mortgage payments – contact your Lender immediately or call 1-888-995-HOPE (4673) to reach a HUD-approved housing counselor. Be patient your Lender is receiving a high volume of inquiries and there is often a delay in processing applications.
Did you know . . .
SERVICERS HAVE MADE A COMMITMENT TO DELAY FORECLOSURE SALES ON ALL LOANS THAT MEET THE MINIMUM ELIGIBILITY CRITERIA FOR A HOME AFFORDABLE MODIFICATION WHILE AN APPLICATION IS UNDER CONSIDERATION.
What if . . .
You’ve rolled your sleeves up and gone to battle for months trying to get your Lender to agree to a Loan Modification. You’ve given them every document in your arsenal and you still can’t make the numbers come together. You’ve finally come to the heartbreaking conclusion that there is no possibility to qualify for a Loan Modification to keep your home?
It’s time to take a look at a Short Sale.
