Struggling home owner can take advantage of government making home affordable program which design to help home owner to afford paying their monthly mortgage payment. Home owners don't need to be behind on their mortgage to qualify for loan modification. Making home affordable program can help struggling home owner to avoid foreclosure.
To apply for this making home affordable loan modification, home owner need to collect all of their income sources and expenses, write all of your income sources and all of your detail expenses on the piece of paper. Write a hardship letter explaining your financial situation and why you struggle to make monthly mortgage payment. The reason can be as simple as make less money at work due to the pay cut or debt accumulation to pay expenses. Whatever the reason for your financial hardship must be reasonable and understandable.
Making home affordable program is supported by US treasury by giving incentive to lenders to modify the home owners existing first mortgage.
To qualify for this making home affordable program, it must be an owner occupant unit, have an unpaid principal balance of $729,250 or less for one unit property. Loan must be originated prior January 1st 2009 and your mortgage payment more than 31% of gross income, and a hardship letter explaining about why you can not afford your monthly mortgage payment anymore.
This making home affordable program is a voluntary act by the Lenders or mortgage servicers to review each of the individual case and assign the case to the negotiator at home retention department to make final decision.
However don't get discourage if you don't get approve for the first time. Ask them the reason why it doesn't get approve and go from there. Ask for any other option you can do to stay current on your mortgage.
