Do I qualify for a mortgage modification under the Obama Plan?

In order to determine if you are eligible to modify your mortgage under the Obama Administration’s Home Affordability and Stability Plan, it’s a good idea to visit the Making Home Affordable website.

From there, you have the opportunity to check your eligibility for refinancing or mortgage modification.

Here,  we cover the requirements for a mortgage modification under the Making Home Affordable program.  First, click here.  You’ll be asked the following questions:

• Is your home your primary residence?
• Do you owe less than $729,750 on your first mortgage?
• Are you having trouble making the payment on your first mortgage?
• Did you get your mortgage before January 1, 2009?
• Is your mortgage payment more than 31% of your gross income?

If you fit into these categories, your work is just beginning.  You then need to gather the following items:

CHECKLIST

• Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
• Your most recent income tax return.
• Information about your savings and other assets
• Information about your first mortgage, such as your monthly mortgage statement.
• Information about any second mortgage or home equity line of credit on the house.
• Account balances and minimum monthly payments due on all of your credit cards.
• Account balances and monthly payments on all your other debts such as student loans and car loans.
• A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.

And then you have to contact your mortgage servicer – the company to which you are making your payments.  Tell them you are asking for a mortgage modification under the Making Home Affordable – Refinance Plan.  

The government says you should be patient.  We agree.  And if you want or need help, please avoid so-called “mortgage modification specialists.”  They are mostly rip-offs.  You can and should get help like this for free.  Click here to find HUD approved counsellors in your state. 

If you are facing foreclosure in court, you need legal assistance and you need it right away.  In that case, please contact one of the attorneys here on Mortgage Law Network to assist you in court while you are pursuing mortgage modification options out of court.

Lakelaw defends people against mortgage foreclosures in Illinois and Wisconsin.

Related posts:

1. Do I qualify for a mortgage refinance under the Obama Plan?
2. What is the Obama Administration’s Home Affordability and Stability Plan?
3. New Mortgage Payment Reduction Plan