There are now dozens of modification programs available that will allow borrowers who have fallen behind to stay in their homes. Some programs are government sponsored; others are in-house programs from individual mortgage lenders and servicers. The most well known program is the FHA’s Home Affordable Modification Program, or HAMP.
HAMP is designed to lower a borrower’s mortgage payment to between 25% and 31% of a borrower’s gross monthly income. To qualify for HAMP, then, you must have an income and your mortgage payment must currently be greater than 25% of your monthly gross income. HAMP is now even available on investment properties.
The most common difficulty borrowers have when working on a modification with their mortgage servicer is the servicer repeatedly losing documents sent by the borrowers. Servicers also generally drag their feet on approving modifications. An attorney experienced in handling mortgage modifications and foreclosures can increase your chances of being swiftly approved for a modification.