Mortgage Modification

Millions of homeowners are in trouble with their mortgages.  Here at our mortgage modification center you will find tips and tutorials on how to successfully modify your home loan.  Let’s start with the basics

Home loan (or mortgage) modification is a process in which the mortgage lender modifies the terms of your mortgage.  Mortgage modifications were virtually unheard of before 2009.  However, in 2009, the federal government instituted The Making Home Affordable Program (HAMP), which gives banks and mortgage lenders incentive to modify mortgages of troubled homeowners.  This was done to soften the blow of the fast decline in the real estate market.  The HAMP program has been modified and extended since inception but its goal has remained the same—to help homeowners and mortgage issuers come to mutually agreeable terms.  The mortgage modification process is a little different depending on who your mortgage issuer is.  However, the first thing you should do to find out if you qualify is to go to this federal government website, Making Home Affordable.  Once you are on that page, click on the specific circumstance that applies to you.  At this time, only Freddie Mac and Fannie Mae loans are eligible for mortgage modification under the HAMP program.  To find out if your mortgage is owned by Freddie or Fannie, go to this page.  Nearly two-thirds of all current mortgages are owned by Fannie and Freddie.  You can also call your mortgage company to see if Freddie or Fannie owns your loan.  Remember, just because Bank of America or Chase is your mortgage company doesn’t mean Freddie or Fannie don’t own your mortgage.

I was able to modify my parent’s mortgage in early 2010, right after the program first commenced.  The process I went through was relatively painless and we got our mortgage modified in less than two months.  However, you should not expect that as I have heard some horror stories and mortgage modifications taking a year to get through.  So if it takes longer than a few months, don’t give up and hang in there.

After finding out if you qualify or not, the next thing you should do is to contact your mortgage company’s home loan division to go from there.