Millions of homeowners are at least 60 days past due on their mortgages and facing imminent foreclosure; but they’re having a hard time taking advantage of mortgage modifications that could help them avoid foreclosure. The government’s Making Home Affordable program has experienced sub par involvement from mortgage servicers and only 9 percent of eligible borrowers facing foreclosure have been able to obtain mortgage modifications through the program.
Many homeowners facing foreclosure are frustrated and stymied by the mortgage modification process which often involves long waits, unreturned calls or even misinformation. But for homeowners who want to save their home from foreclosure, being informed and being persistent can pay off.
What you need to know:
Homeowners can qualify for the mortgage modification program if they are at risk of imminent default or foreclosure. For example, even if you are current on your mortgage, if you experience a financial hardship such as a job loss that will make it impossible to pay your mortgage in the future, you may be considered at risk of imminent default or foreclosure.
If your mortgage payment consumes more than 31 percent of your monthly gross income you may qualify for the mortgage modification program.
When you contact your mortgage servicer regarding the mortgage modification, you must have all of the required documents ready which include– tax returns, pay stubs and a letter describing why your mortgage is unaffordable, and what caused your income to fall or expenses to rise.
RESOURCES FOR HOMEOWNERS
www.makinghomeaffordable.gov – Information on government’s foreclosure prevention program.
www.hopenow.com -Counselors available to help distressed homeowners. Call toll-free 1-888-995-4673 to reach credit counselors to who can help you with options.
ACORN Housing -Call 214-823-4580 to find a housing counselor for free help.