Do I Qualify

One of the very first things people wonder once they are ready to pursue mortgage relief is if they are qualified and if so what to expect. It is important for people to know that not everyone is eligible for loan modification. As the laws surrounding home loans and loan modifications change, so do the eligibility requirements. In fact, President Obama recently changed the loan modification qualification guidelines to address and remedy the national foreclosure crises.

New Loan Modification Plan & Primary Qualifications

Recently, the United States Treasury Department released a report that listed qualifications for loan modification. In order for people to modify their home loans, they must meet the following criteria:

The home loan must have originated before January 1, 2009.

The owner of the residence must occupy the home and use the home as a primary residence. This must be verified through tax and property tax statements. Investors that purchase homes for re-sale are not guarded under new laws. The laws were created to protect individual home owners from foreclosure.

The home must be a single family 1-4 unit property. This includes individual houses, duplexes or condos.

When filing for loan modification, the home must not be vacant or condemned.

If a borrower is currently in the process of filing for bankruptcy or has already filed for bankruptcy, he/she is not eligible for loan modification under this plan.

If a borrower is currently involved in litigation with his or her lender or creditor, he or she may still obtain a loan modification and will not lose his or her legal rights.

First lien loans must have an unpaid principal balance (prior to capitalization of arrearages) equal to or less than:

• 1 Unit: $729,750
• 2 Unit: $934,200
• 3 Unit: $1,129,250
• 4 Unit: $1,403,400 

Once a person is in the process of obtaining loan modification, foreclosure proceedings will be suspended. If the person is unable to modify his or her home loan, the foreclosure proceedings will continue.

People may only modify one loan under this program, not multiple loans at once.

If you would like to know if you qualify, please contact The Mortgage Law Group directly. We can answer your questions and help you obtain the best possible form of relief.