HOME AFFORDABLE MODIFICATIONS FAQs
1. Can Making Home Affordable help me if my loan is not owned or securitized by
Fannie Mae or Freddie Mac?
Yes. Making Home Affordable offers help to borrowers who are struggling to keep their
loans current or who are already behind on their mortgage payments. By providing
mortgage servicers with financial incentives to modify existing first mortgages, the
Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure
regardless of who owns or services the mortgage.
2. How do I know if I qualify for a Home Affordable Modification?
To apply for a Home Affordable Modification, you must:
-Be an owner-occupant in a one to four unit property,
-Have an unpaid principal balance that is equal to or less than $729,750 for one
unit properties (there is a higher limit for two to four unit properties - consult
your servicer),
-Have a loan that was originated on or before January 1, 2009,
-Have a mortgage payment (including taxes, insurance, and home owners
association dues) that is more than 31% of your gross (pre-tax) monthly
income, and
-Have a mortgage payment that is not affordable, perhaps because of a
significant change in income or expenses.
If you answered YES to all of these questions, you may be eligible to apply for a Home
Affordable Modification. Only your servicer will be able to tell you if you qualify.
3. Do I need to be behind on my mortgage payments to be eligible for a Home
Affordable Modification?
No. Responsible borrowers who are struggling to remain current on their mortgage
payments are eligible if they are at risk of imminent default, for example, because their mortgage payment has recently increased to a level that is not affordable. If you have had or anticipate a significant increase in your mortgage payment or you have had a significant reduction in income or have experienced some other hardship that makes you unable to pay your mortgage, contact your servicer. You will be required to document your income and expenses and provide evidence of the hardship or change in your
circumstances.
4. I have a second mortgage. Am I still eligible?
Yes, but only the first mortgage is eligible for a modification.

Click on the Link to view the detailed Loan Modification Guidelines

Detailed Loan Modification Guidelines