Mortgage Modifications: Do I qualify?
July 11, 2012


By Steven Miner

In my previous blog post I talked about some of the mortgage modification basics.  In this post, I want to talk about who qualifies.  While each case is unique and the facts and circumstances may differ based upon the facts and circumstances of the particular case, a broad generalization of the qualifications follows:

First, the property must be owner occupied.  Properties that are owned as investment properties (if you own a residence and lease it to tenants) cannot qualify for this program.  Properties that are owned as vacation properties do not qualify.

Secondly, to qualify the property owner must be experiencing a temporary hardship.  A temporary hardship most often occurs when a person was laid off for a period of time and has now returned to work.  The borrower is in a position to resuming paying the monthly mortgage but cannot pay any accumulated arrears.

Next, your mortgage must be backed by the federal government.  The two most common programs are the Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (Fannie Mae).  Click here to determine whether your loan is backed by Freddie Mac or Fannie Mae.  If your loan is not backed Freddie or Fannie you should still contact your lender for nongovernmental programs.