Mortgage modification programs can make it possible for you to change the terms of an existing mortgage so the loan becomes more affordable to you.  Mortgage modifications must be obtained through the mortgage lender that you owe money to.  However, the federal government has launched the Making Home Affordable Program to incentivize lenders to participate in various types of mortgage modification programs. 
There are a number of different mortgage modification programs, each with varying eligibility criteria and requirements. You should consider speaking with a Melville, NY bankruptcy lawyer if you are having a hard time paying your house bill and want to consider a mortgage modification. Ronald D Weiss, P.C. provides assistance with mortgage modifications, foreclosures and bankruptcy.

Eligibility for Mortgage Modification Programs

The mortgage modification programs that are part of the Making Home Affordable program include the:

• Home Affordable Modification Program (HAMP)
• The Principal Reduction Alternative (PRA)
• The Second Lien Modification Program (2MP)
• The FHA Home Affordable Modification Program (FHA- HAMP)

There are also special programs available through the USDA and the Veteran’s Administration.
To qualify for HAMP, you must have obtained a mortgage before January 1, 2009 and you must be experiencing financial hardship. Your mortgage cannot exceed $729,750 and you must not have been convicted of felony theft crimes, forgery, money laundering or tax evasion within the past 10 years. Provided you qualify, you may be able to lower your monthly payments.
To qualify for the Principal Reduction Alternative and reduce the amount you owe, you must have a mortgage that is not guaranteed by either Fannie Mae or Freddy Mac.  The home must be your primary residence and you must owe more than it is worth. The mortgage cannot exceed $729,750 and you must have obtained the loan prior to January 1, 2009.  You must be experiencing financial hardship, have mortgage payments exceeding 31 percent of your gross monthly income and be either delinquent on your loan or in danger of falling behind. Finally, you need to have proof you have enough income to make the modified payments and you can’t have been convicted of various criminal offenses in the past 10 years.
Qualifying for the Second Lien Modification Program is possible if your first mortgage was modified under HAMP and you also owe money to a second mortgage lender. You are not eligible for this modification program if you have committed certain criminal offenses in the past 10 years or if you have missed three or more consecutive monthly payments on your HAMP-modified mortgage.
Finally, qualifying for FHA-HAMP is possible if you have a mortgage loan insured or guaranteed by the FHA that has payments exceeding 31 percent of your monthly income.
Determining which of these mortgage modification programs is right for you is the first step, followed by applying for a modification with your lender and providing required documentation. An experienced Melville mortgage modification lawyer can help you to determine what your options are and how to get your loan terms changed to work for you. Call Ronald D. Weiss, P.C. today to learn more about how a lawyer can help you to save your home.