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.  See our Debt Solutions Page for specific information on alternatives 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%.