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Loan Modification ApplicationHaving a Problem Making Your House Payments?
Mortgage Modification May Be The Answer
(2/1/10)

Homeowners struggling to meet their mortgage obligation because of reduced income or payments that have adjusted beyond their ability to pay may find help in a loan modification. HAMP, a mortgage rescue plan established as part of the Making Home Affordable program, and intended to save millions of homes from foreclosure, has been slow to reach the millions needing help. Administration officials are now pressing lenders to speed up the process and are moving to streamline the procedures for both lenders and borrowers.

Homeowners whose loan originated on or before January 1, 2009 are eligible for consideration, and once approved, enter a trial period to demonstrate their ability to maintain the new lower payment, which in some cases may be lower by as much as $500 or more. At the end of a successful trial, owners then receive permanent modification.

With the potential for millions more foreclosures—some estimate that as many as 5 million are currently at least three months behind on their mortgage payments—Treasury is scrambling to find ways to help lenders respond more quickly. Those in default and who think they may qualify for assistance, should immediately contact their lender to see if modification is possible.

The following information is from the Department of Housing and Urban Development (HUD) website:

The Home Affordable Modification Program requires borrowers to enter into a Trial Period Plan before receiving a permanent Home Affordable Modification. During this period, borrowers must submit trial payments and all required forms and documents.

Important Notice for Borrowers Who Received a Trial Period Plan:

You must make sure that your mortgage servicer receives all of the forms and documents they need to verify your eligibility and offer you a permanent Making Home Affordable Modification before your Trial Period Plan expires. Your trial period plan notice will indicate your document due date. Double check the “Request a Modification” page and send any missing documents to your mortgage servicer right away.

If you believe that you have sent all of the required forms and documents, contact your mortgage servicer to confirm that they have everything they need to make a decision.

If you have trouble reaching your mortgage servicer, or you need help completing the necessary documentation, free help is available from a HUD-approved housing counselor by calling 1-888-995-HOPE (4673) and asking for MHA HELP.

For the more specific information or to find out how to speak with a HUD counselor, visit the HUD website.

You can also visit the Making Home Affordable website for a quick test to see if you qualify for modification.

 

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