3/17/2010 6:49 AM (PST)

Well, as one blogger put it: "at least the saints are starting to charge for miracles." Have you talked to a HUD approved housing counseling agency? These non-profit groups will do everything a for profit company will do and they have credibility with the mortgage lenders. The good news is that their services are free. Still, there's no guaranty that this will result in a modification, but you won't be burned in the process. The toll free number is: 888-995-4673.

3/25/2010 5:34 PM (PST)

Part of the President's plan, Home Affordable Modification Program (HAMP) speaks specifically to a borrower having to be delinquent in order to qualify for a modification on HAMP. There are certain requirements which I wont go in to detail here, but the goal is to get borrowers with high front end payments (Principle, Interest, Taxes, Insurance and Association Fees) to a specific percentage of the borrower's Gross income. Borrowers can be current as long as there is documentable proof that default (non payment) is eminent and significant.

In many cases, a counseling session is a requirement. That is if the back end debt to income ratio is greater than 55% (basically the payments that reflect on a credit report. It must be conducted by a HUD approved counseling agency and is free to you.

You should have your basic loan information handy, your income and your general monthly expenses. If you have credit card debt, you should have your statements handy for an accurate assessment. A Debt Management plan may be a good option if you qualify as well. Depending on your characteristics of your investor will determine which plan, if any is the right fit for you. There are many plans out there, such as HAMP and FHA HAMP to name a couple. Should a modification not be an option, there is as well a new program that will hit on April 5th of this year to help borrowers exit gracefully from their home through a Short Sale (selling the property for less than the amount needed to settle the debt) or a deed in lieu. It's called HAFA. Obviously, this would be a last resort, but there is a $1500 incentive for borrowers qualifying for HAFA.

In addition to these programs, there are also other programs available to qualifying borrowers for assistance with lowering the second liens as well.

You can give Springboard Non Profit Consumer Credit Counseling a call and speak with a HUD certified counselor for Foreclosure Prevention counseling as well as credit and debt counseling. Springboard is part of the Homeowners Hope Hotline.

There are many programs available for families to keep their home, Springboard will partnership with you to get an understanding of your current situation and gather information about your living situation. Gathering this information will help in finding solutions and resources that can benefit you and help with getting a resolution for you with your lender.

Ultimately, the goal is to help you create a realistic financial situation where you will be able to maintain your home long term. If appropriate, we will also facilitate a 3 way call with you and your lender to discuss the loss mitigation options that may be available for you.

You do not pay for this counseling service and no company can guarantee a modification. It is based on the investor's guidelines but many many servicers have agreed to participate in this program with over a million people currently on a trial modification.

Call 800-449-9392.