Not  all homeowners are eligible for home loan modification and each lender has its own requirements.  We provide a free consultation where we evaluate each client's circumstances to determine eligibility.   In most cases we recommend an alternative solution to foreclosure. 

Below is a summary of the Obama Administration's plan that was released on February 18, 2009, and has been modified from time to time.   Lender participation in the program is voluntary.

If a borrower is not eligible for a home loan modification under the Obama plan, a lender may still consider modifying the loan.

Making Home Affordable Modification Program Eligibility:

• Mortgage must be on your primary residence, including 1 to 4 unit homes, condominiums, and manufactured homes.

• You must demonstrate a significant hardship such as loss of income or interest rate change.

• The mortgage must have originated before January 1, 2009

• The unpaid principal balance must be equal or less than:
  1 unit - $729,750
  2 units - $934,200
  3 units - $1,129,250
  4 units - $1,403,400

• Each mortgage can be modified only once under the program.

Other Making Home Affordable Modification Program Attributes:

• Foreclosures will be suspended while borrowers are being considered for a modification.

• The modification will last 5-years.  The floor interest rate is 2% and the cap is the market rate on the day of the modification. Temporary loan rate decrease will go back to the market rate after 5-years.

• Current late fees will be waived.

• Actual lender legal fees and costs can be added to the loan principal.

• The loan should be modified so that the borrower's principal, interest, taxes, insurance, and HOA is 31% or less of the gross income.  The government will allow lenders to reduce the ratio to 38% and then kick in a cash subsidy to reduce the amount to 31%.