Mortgage Modification
- Details
- Category: Kansas City Law Firm
While there are several different programs, The Home Affordable Program has been in existence since 2009. You may be eligible to modify your home loan under the Home Affordable Modification Program, if:
1. Your home is your primary residence (not a rental),
2. The amount you owe on your first mortgage is equal to or less than:
- $729,750 for 1 unit
- $934,200 for 2 units
- $1,129,250 for 3 units
- $1,403,400 for 4 units
3. You are experiencing some type of financial hardship, such as a job loss, divorce, medical emergency,
4. Your current mortgage was taken out before January 1, 2009, and
5. The payment on your first mortgage (including principal, interest, taxes, flood and hazard insurance, and homeowners association dues, if applicable) is more than 31% of your current gross income (before taxes and deductions).
When you request a mortgage modification, you complete the forms requested by your lender to prove how much you make and how much you spend, to determine if they want to "let" you have a new payment that is less than or equal to 31% of your gross income. The key point is that you are "asking" for something that you can't demand. The fact that you can't force your mortgage company to lower your payment, and have to ask them to help you, is an enormous flaw in this program. This is why the Internet is full of stories of people who tried to complete the process without an attorney only to have the mortgage company "lose" the paperwork submitted, several times, before informing the debtor that they don't qualify for the modification. This often happens just days before the foreclosure sale. Will hiring an attorney guarantee that your request will be granted? Absolutely not and an attorney that guarantees success is a liar. However, I have had very good results obtaining modifications on behalf of my clients because the lenders know from my website name that I am an attorney that practices bankruptcy law. They know that if they fail to take our request seriously, they might receive considerably less if the client decides to file bankruptcy.
Mortgage Modification