Modification | Know Your Options

Modification | Know Your Options

Many homeowners have fallen behind on their mortgage and could soon be on the path to foreclosure without permanent help. If this sounds like your situation, you may be eligible to modify your mortgage. Options include the Fannie Mae Flex Modification, which replaces the Home Affordable Modification Program (HAMP) that ended in December 2016.

“Make the calls, and get the help you need.”

– Andrea, saved $369 a month.

What is a Modification?

Under this option, you reach an agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount.

A modification may be an option if:

  • You are ineligible to refinance
  • You are facing a long-term hardship
  • You are several months behind on your mortgage payments or likely to fall behind soon

Modification Calculator
Use this tool to estimate how a Modification might help you.

What are the benefits?

  • Resolve your delinquency status with your mortgage company
  • May reduce your monthly mortgage payments to a more affordable amount
  • Change the original terms of your mortgage permanently, giving you a new start
  • Less damaging to your credit score than a foreclosure
  • Stay in your home and avoid foreclosure

How does it work?

A modification involves one or more of the following:

  • Changing the mortgage loan type (e.g., changing an Adjustable Rate Mortgage to a Fixed-Rate Mortgage)
  • Extending the term of the mortgage (e.g., from a 30-year term to a 40-year term)
  • Reducing the interest rate either temporarily or permanently
  • Adding any past-due amounts, such as interest and escrow, to the unpaid principal balance, which is then reamortized over the new term
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Modification Calculator
Use this tool to estimate how a Modification might help you.

Next steps

Step 1

Gather your financial information—Make sure you have your basic financial and loan information on hand when you call your mortgage company. You’ll need:

  • your mortgage statements, including information on a second mortgage (if applicable);
  • your other monthly debt payments (e.g., car or student loans, credit card payments); and
  • your income details (paystubs and income tax returns).

Step 2

Explain your current situation—Be ready to outline your current hardship and explain why you are having trouble making your mortgage payment and if this is a short-term or long-term problem. Your mortgage company will need to understand the reasons why you are having difficulty in order to find the right solution for you.

Step 3

Contact your mortgage company or the Fannie Mae Mortgage Help Network—Tell them you are interested in a Modification and you want to see if you qualify.

Use these helpful forms to help you prepare »

Your mortgage company wants to help you keep your home and avoid foreclosure. Contact them quickly to see if you are eligible for a Modification. If you need further assistance (before or after contacting your mortgage company), contact a Housing Counselor.

What Homeowners are saying about modifying.

“Don’t settle for ‘no’ from your mortgage company. Contact the investor, and ask for their help.”

– Yvette of Millville, NJ, saved $447 per month. Read the Full Story »




“Even if you’re in foreclosure, find out who owns your mortgage loan and see if they can help. It might not be too late to save your home.”

– Kathy and William of Rowlett, TX, gained peace of mind. Read the Full Story »


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“Don’t be embarrassed to ask for help. Lots of people, especially in Florida, are struggling. Make the calls, and get the help you need.”

– Andrea of Palm Coast, FL, saved $369 per month. Read the Full Story »

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