Making Home Affordable
In February 2009, the Obama Administration introduced a comprehensive Financial Stability Plan to address the key problems at the heart of the current crisis to get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure.
The Home Affordable Modification Program provides eligible homeowners the opportunity to modify their mortgages to make them more affordable. Over one million homeowners have already gotten help under the program. The program is on track to help 3 to 4 million homeowners by 2012.
On March 26, the Obama Administration announced expanded flexibility for mortgage servicers to assist more unemployed homeowners and homeowners who are underwater through the program.
The Second Lien Modification Program (2MP) offers homeowners a way to modify their second mortgages to make them more affordable when their first mortgage is modified under the Home Affordable Modification Program.
The Home Affordable Refinance Program gives homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments.
The Home Affordable Foreclosure Alternatives Program provides opportunities for homeowners who can no longer afford to stay in their home but want to avoid foreclosure to transition to more affordable housing through a short sale or deed-in-lieu of foreclosure.
Request a Home Affordable Modification
To request a modification fill out these two forms:
- Request Form (Request for Modification and Affidavit)
- Tax Form (Form 4506T-EZ)
Determine if you are eligible for a Home Affordable Modification by using the simple tool at the Official Making Home Affordable website.
If you are eligible, you can request a Home Affordable Modification by completing the easy steps below. If you need assistance completing the forms or have questions about the process give us a call.
Step 1 Complete the Request Form (Request for Modification and Affidavit)
The Request Form provides information to your mortgage servicer about your home and financial situation. You can download an instruction guide for completing the Request Form here. After you have completed the form, print two copiesone for your records and one to send to your mortgage servicer. All of the borrowers on the mortgage must sign the Request Form.
Step 2 Complete the Tax Authorization (IRS 4506T-EZ Form)
The Tax Form gives permission to your mortgage servicer to request a copy of the most recent tax return you have filed with the Internal Revenue Service (IRS). Click here for instructions on completing the form. After you have completed the form, print two copiesone for your records and one to send to your mortgage servicer. Only one taxpayer is required to sign the Tax Form.
Step 3 Gather Proof of Income
Your mortgage servicer is required to verify your income to ensure that the modified mortgage payments will be affordable for you. The type of documentation you need to provide depends on the source of your income. The simple Proof of Income Checklist will tell you what documents you need to collect if you are a wage earner, self-employed, or receive retirement income. Be sure to make copies of your income documentation and keep the originals for your records.
Step 4 Send the Documents to Your Mortgage Servicer
After you complete, print, and sign the Request Form and Tax Form, send these documents, along with your proof of income, to your mortgage servicer.
Understanding the Trial Period
The Home Affordable Modification Program requires borrowers to enter into a Trial Period Plan before receiving a permanent Home Affordable Modification. During this period, borrowers must submit trial payments and all required forms and documents. For more information about documentation requirements, visit Request a Modification.
Important Notice for Borrowers Who Received a Trial Period Plan
You must make sure that your mortgage servicer receives all of the forms and documents they need to verify your eligibility and offer you a permanent Making Home Affordable Modification before your Trial Period Plan expires. Your trial period plan notice will indicate your document due date. Double check the Request a Modification page and send any missing documents to your mortgage servicer right away.
If you believe that you have sent all of the required forms and documents, contact your mortgage servicer to confirm that they have everything they need to make a decision.
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