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If You’re Behind On Your Payments

If you are having trouble making your payments, contact your loan servicer to discuss your options as early as you can. The longer you wait to call, the fewer options you will have.

Many loan servicers are expanding the options available to borrowers – it’s worth calling your servicer even if your request has been turned down before. Servicers are getting lots of calls: Be patient, and be persistent if you don’t reach your servicer on the first try.

You may qualify for a loan modification under the Making Home Affordable Modification Program (HAMP) if:

  • Your home is your primary residence
  • You owe less than $729,750 on your first mortgage
  • You got your mortgage before January 1, 2009
  • Your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) is more than 31 percent of your current gross income
  • You can’t afford your mortgage payment because of a financial hardship, like a job loss or medical bills.

If you meet these qualifications, contact your servicer. You will need to provide documentation that may include:

  • Information about the monthly gross (before tax) income of your household, including recent pay stubs.
  • Your most recent income tax return.
  • Information about your savings and other assets.
  • Your monthly mortgage statement.
  • Information about any second mortgage or home equity line of credit on your home.
  • Account balances and minimum monthly payments due on your credit cards.
  • Account balances and monthly payments on your other debts, like student loans or car loans.
  • A completed Hardship Affidavit describing the circumstances responsible for the decrease in your income or the increase in your expenses.

If you’re interested in refinancing to take advantage of lower mortgage rates, but are afraid you won’t qualify because your home value has decreased, you may want to ask if you qualify for the Home Affordable Refinance Program (HARP) or the HOPE for Homeowners (H4H) program.