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U.S. Department of Housing and Urban Development

HopeNow.com
Support and Guidance for Homeowners

Do I Qualify?

While we cannot guarantee results, if you are able to show a modification is justified and you're able to ask for it in the right way, lenders are much happier to do a modification than they are to see you stop making payments. Thus, the basis for a loan modification is financial hardship. Click the "Qualify Online" button to use our automated online prequalification tool.

Here is a list to help you see if you qualify:

Is it now, or will it be in the near future, a hardship to pay your mortgage in full on time each month?
Have you had a change in your financial situation since you originally got your mortgage?
Do you have a negative amortizing loan?
Has there been a change in your property value or in your credit or income situation, preventing you from selling or refinancing?
Are you currently earning income, but not enough to cover all of your bills?
If you own a rental property, are you losing money on it each month?
Do you feel you were taken advantage of when you originally got your loan?
Were you unaware that your loan payments would be increasing?
Are you now or will you soon be behind in your payments?

This is not a complete list and each case is unique, however, if you believe it's tough to make your payments and you are unable to refinance, a loan modification is likely to be a possibility.

Who Doesn't Qualify?

While there is no list of what causes a dis-qualification, it's safe to say that if you are current on your mortgage, have money in the bank, have enough income to cover all your bills, and have a reasonable rate and terms on your loan, it's unlikely you will convince the lender to modify your loan. However, you may qualify for a short sale if you are interested in selling but you don't have the cash to make up the difference between what you owe and what you can sell for.