Q. Can I be current or do I need to be behind in my mortgage to qualify for a note modification?
A. You only need to fit into a predetermined set of guidelines, Click here to see if you qualify.


Q. Can I reduce my principal balance with a loan modification?
A. Yes, however lenders are more reluctant to offer homeowners principal reductions than they are interest rate modifications. There is some proposed legislation that may cause lenders to begin to do this in the near future.


Q. What if after my consultation you determine I don't qualify for a Note Modification?
A. Learning that you do not qualify is a valuable free services we provide. This will save you time and possibly thousands of dollars paid to a modification company when you do not qualify. Most importantly is an understanding of why you may not qualify. Once you know this reason you may be able to make adjustments in your situation that will result in a situation that allows for a modification in the near future.


Q. Can you guarantee that I will be approved for a Note Modification after consultation.
A. Yes. If you qualify we guarantee that your loan modification will be successful or our services are free.


Q. Can Making Home Affordable help me if my loan is not owned or securitized by Fannie Mae or Freddie Mac?
A. Yes. Fortress Credit Services offers help to borrowers who are struggling to keep their loans current or who are already behind on their mortgage payments. By providing mortgage servicers with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.


Q. How do I know if my loan servicer is participating in providing one of the Note Modification programs? Are all servicers required to participate?
A. Participation in these programs is voluntary. However, the government is offering substantial incentives to servicers and investors, and it is expected that most major servicers will participate. Participating servicers will sign a contract with Treasury's financial agent, through which they agree to review every potentially eligible borrower who calls or writes asking to be considered for the program.


Q. Will the modified loan payment include property taxes and homeowners insurance?
A. Yes. The modification payment will include a monthly amount to be set aside (escrowed) to pay taxes and insurance when they become due. This escrow is required even if your prior loan did not include an escrow.


Q. How low can the interest rate go to make me qualify?
A. Treasury is providing incentives to your investor to write the interest down to as low as 2%, if necessary to get to a payment that you can afford based on your income.


Q. What happens if that is not enough to get to an affordable payment?
A. If a 2% interest rate does not result in a payment that is affordable (no more than 31% of your gross monthly income), your servicer will:

1. First try to extend your payment term. At the servicer's option your payments could be extended out to 40 years.
2. If that is still not sufficient your servicer may defer repayment on a portion of the amount you owe until a later time. This is called a principal forbearance.
3. A portion of the debt could be also be forgiven. This is optional on the part of the investor. There is no requirement for principal forgiveness.

Q. Could I end up with a balloon payment?
A. Yes. If your servicer determines that a principal forbearance is required to get your monthly payment to an affordable level, the amount of the forbearance, say for example this was $20,000, would be subtracted from the amount used to calculate your monthly mortgage payment, but you would still owe the money. You would have a $20,000 balloon payment that had no interest and was not due until you paid off your loan.


Q. My loan is scheduled for foreclosure soon, can it be saved?
A. Yes, many servicers have made a commitment to postpone foreclosure sales on all mortgages that meet the minimum eligibility criteria for a Note Modification until those loans can be fully evaluated.  
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