How to Determine If I Qualify for a Government Bailout Restructuring Mortgage

It's easy to qualify for the government's loan modification program.

The government's Home Affordable Modification program (HAMP) was launched to ease the problems that the downturn in the U.S. housing market created. Homeowners who obtained their mortgage before January 1, 2009, have turned to this loan modification program to help avoid foreclosure as it provides them, if they qualify, with lower mortgage payments. There are several qualification requirements that a homeowner must meet.

Instructions

1. Prove that the home is your primary residence. Several documents can be used to prove primary residence, including a driver's license, tax return or automobile insurance policy.

2. Compare your mortgage payment to your pre-tax monthly income. Your mortgage payment must be greater than 31 percent of your income. Your paystubs or federal tax return can serve as proof of income.

3. Ensure that the amount you owe on your primary, or first, mortgage loan amount is no greater than $729,750, the HAMP program's limit. If you have a second mortgage, HUD has a Second Lien Modification Program, known as "2MP." You can obtain more information on 2MP at the Making Home Affordable website, listed below in the Resources.

4. Prove that you are unable to make your current monthly mortgage payments due to a financial hardship such as a job loss or illness. Proof can include a letter from your former employer confirming your termination or layoff, or hospital or doctor bills.

References

• MakingHomeAffordable.gov: Making Home Affordable

Resources

• MakingHomeAffordable.gov: Explore Eligibility
• MakingHomeAffordable.gov: Second Lien Modification Program