Modification Agreements

This section will attempt to provide a base knowledge of some of the most common types of modifications available to borrowers currently.  “Modification Agreements” comprise a vast array of options.  Before diving into them, please keep in mind a few things:

  • The options listed below are options available through the Making Home Affordable Program offered by the government.  Individual lenders also have in-house modifications that could potentially be available in the event you do not qualify for a federal program.  In-house modifications will not be discussed as their requirements and availability depend primarily on each individual lender.  Should you wish to inquire about in-house modification possibilities, you should call your mortgage company and ask to speak to someone in the “loss mitigation” or “modification” department.
  • Not all mortgage companies participate in the Making Home Affordable Program.  Additionally, lenders may participate in some of the programs listed below, but not all of the programs.  To determine whether your lender participates in any of the other programs listed below, please visit the government’s website at www.makinghomeaffordable.gov, or contact your lender.
  • This is not a complete list of the options available under the Making Home Affordable Program.  It is a list of the programs which are most applicable to the majority of homeowners.  If you do not feel that any of the programs discussed below are applicable to your situation, please visit www.makinghomeaffordable.gov to see if there are any other options available to you.
  • The Making Home Affordable Program has currently been extended through December 31, 2013.  If you are reading this after that date, you will need to determine whether the Program is still in effect.  If it is not, these options may be of no use to you.
  • Given that you are at a website dedicated to foreclosure options and alternatives, it is likely that your home is either set for foreclosure, or you have a feeling things may be heading in that direction. Applying for any of the following programs will NOT guarantee that the foreclosure will be stopped.  Your mortgage company will likely halt foreclosure proceedings if you are being evaluated for a modification, BUT IT IS NOT GUARANTEED.  Try and get any statement that a foreclosure has been postponed in writing or recorded (if legal in your state).  Foreclosures might still occur even though the borrower was told that it would not occur “because of the loan modification application.”  If you are set for foreclosure and are not fully satisfied that a foreclosure has been halted pending your modification evaluation, please contact an attorney to discuss your particular situation.
  • Each of the availability and eligibility requirements come directly from the makinghomeaffordable.gov website.

ARTICLES RELATING TO MODIFICATION AGREEMENTS: