What are the basic eligibility requirements for a loan modification under the Homeowner Affordability and Stability Plan?

You must meet some minimum eligibility requirements in order to qualify for a loan modification under the plan:

· You have to live in your home, which can be a single-family home or a house containing up to four units or apartments.

· Your unpaid principal balance on your mortgage loan is less than $729,750 (or a higher amount in the case of a multi-unit house.

· You entered into your mortgage loan before January 1, 2009.

· Your monthly mortgage payment (including property taxes and insurance premiums) is more than 31% of your gross monthly income.

· Your monthly mortgage payment is no longer affordable for you due to some change in your circumstances.

If you meet all of these requirements, your loan servicer must consider your request for a loan modification. However, your loan servicer will ultimately decide whether you are entitled to a loan modification under the Plan.

Other Foreclosure FAQs

Q: How do creditors get paid when foreclosing on a house to satisfy unpaid debts?
A: A foreclosure is where the creditor collects its lien by forcing a sale of the debtor's real property. The creditor receives the amount of the proceeds from the sale … More
Q: What is the Homeowner Affordability and Stability Plan?
A: Congress recently passed the Homeowner Affordability and Stability Plan (“the Plan”), which provides various options for homeowners who are feeling the … More
Q: When and why does foreclosure begin?
A: Lenders will initiate foreclosure proceedings when homeowners become delinquent in their mortgage obligations, usually after three payments are missed. The lender … More
Q: What is a loan modification, and how will it help me with my mortgage?
A: A loan modification occurs when a homeowner enters into an agreement with his or her mortgage loan servicer to change the terms of the mortgage. The goal … More
Q: How long does it take to get a loan modification?
A: The length of time that it takes to get a loan modification depends greatly on how long it takes your mortgage holder to process your loan modification, as … More
Q: I have already filed for bankruptcy. Will the Homeowner Affordability and Stability Plan help me keep my home?
A: While the Plan does not contain specific provisions about consumers who are already in bankruptcy, the Helping Families Save Their Homes Act of 2009, which is … More
Q: What do I need to give to my loan servicer if I am requesting a loan modification?
A: You are likely to need the following documents for your loan modification request: · Recent paystubs or … More
Q: How do I know if my loan servicer is participating in the Homeowner Affordability and Stability Plan?
A: You should check with your loan servicer to see if it is participating in the Plan. If your loan servicer is not participating in the Plan, you should still … More
Q: Are all mortgage loans eligible for refinancing or loan modification under the Homeowner Affordability and Stability Plan?
A: Yes, most types of loans, including adjustable-rate mortgages, prime or sub-prime mortgages, and loans through Freddie Mac, Fannie Mae, or private lenders are … More
Q: Will I be ineligible for a loan modification under the Homeowner Affordability and Stability Plan if I am current in my mortgage payments?
A: No. You may still be eligible for a loan modification under the Homeowner Affordability and Stability Plan if you are current in your mortgage payments, but you are … More