SHOULD YOU DO IT YOURSELF? You can work directly with your lender. The process is daunting for most strapped homeowners. Approval rates are markedly higher when borrowers engage professionals. Lenders give priority to complete, detailed packages that include compelling reasons to modify vs foreclose.

WILL YOU QUALIFY?  If you have bonifide reasons for falling behind, plus the income to support a modified payment, your prospects are good. Some examples: temporary layoffs, income reductions, medical expenses, etc.

TIME FRAME TO QUALIFY: The optimal time for requesting a modification is when you are 30-60 days late. 

OPTION TYPES: Each of these options has requirements for eligibility.

• Repayment Plans– An arrangement to repay past due amounts while still making regular schedule payments.
• Forbearance – Provides a temporary reduction or suspension of payments followed by an arrangement to cure the delinquency.
• Modification – A change in the loan type, rate or term to make a mortgage loan more affordable and sustainable.
• Short Sale (or pre-foreclosure sale) – Involves the lender releasing the lien against the property in exchange for the proceeds of the sale of the property for less than the amount owed.
• Deed-in-Lieu – The transfer of title and possession of your property to lender to avoid foreclosure.
• Account Re-age – Restores the payment status to "on-time" and adjusts the minimum payment back to the original amount.
• Home Affordable Modification Program – A uniform modification process to provide eligible borrowers with affordable first lien mortgage payments.
• Homesaver Advance (Fannie only) – Offers a 15 year unsecured loan for the total amount past due (including taxes and insurance) that is used to bring the delinquent mortgage current.
• Partial Claim (FHA loans only) – A short-term, interest free loan from the Department of Housing and Urban Development to repay past due amounts