Mortgage Modification Background

The federal law creating the “Make Home Affordable” program took effective March 4, 2009.  In my experience, even lenders who hold “nonqualified loans” will agree to loan mods if the facts make sense.  It is wise to be educated on these new standards.The homeowner needs to know his rights under law, and he needs to make sure the lender foreclosing knows the homeowner’s rights under law.

The links in this section are the official explanations of the “Make Home Affordable” program.  To have the most detailed explanation, one should start with the federal Make Home Affordable modification_program_guidelines.  In terms of defending against a lender’s refusal to modify, this is the primary document to explain your rights as a consumer.  In essence, the homeowner who has a qualifying loan must submit proof of income, and he is entitled to a payment which is no more than 38% of his household income.  Past due payments are rolled into the loan, and the homeowner keeps paying and staying.  It is as simple as that.

For those who are interested mainly in the “big picture”, the highlights can be skimmed  in more simple form.  The program is summarized well in the mentioned Make Home Affordable guidelines_summary, and I encourage anyone going to court next week to take a copy of this document with them.

If you relate better to a FAQ format, a simple question and answer text is used to clarify these more complex documents.  I recommend reading this as an adjunct to other documents.  I confess, by the 3rd time I read it in a different form, I think I finally get it!  This explanation can be found at: Make Home Affordable borrower_qa.

The overall impact of the program is forecast to impact millions of home mortgages.  The scope of the program is impressive, as specified in Make Home Affordable housing_fact_sheet.  Nevertheless, consult with the guidelines first, the summary second, and the “borrower qa” third, for a good description of details upon which you can rely for mortgage modification of qualified loans.

Do I really need an attorney?

Given the clarity of the federal law, no.  Given the resistance, fear, and ignorance of lenders and others, yes.  Although the process should be simple, it rarely turns out that way.  Want examples?  Just read my blog week by week as I grind through foreclosure defense cases in the state courts.

I hope this information has been helpful to you.  It is my sincere desire that you have all the tools to do a great job in protecting yourself.  But if you are a worrier, just give us and call, and we will be happy to serve your needs.

Give us a call today at (317) 266-8888, or email Mike at

Indianapolis Small Business and Consumer Protection Attorney: bankruptcy, debt settlement, and student loan relief