If you are a homeowner who is having trouble keeping up with mortgage payments, you are probably wondering if you qualify for the Federal loan modification program. The goal of the new loan modification plan is to help 7-9 million borrowers stay in their homes. However, the program is voluntary and each lender will determine which borrowers will qualify for help. The Federal government will offer incentives to lenders who participate, but the final determination is up to each bank. Homeowners will be asked to gather certain required documents and complete loan modification forms that will be reviewed for eligibility.

1. You must live in the home as your primary residence
2. Includes second mortgages
3. You must be able to prove your income
4. Your current house payment must equal 31% or more of your gross monthly income
5. You do not have to be delinquent to apply for this loan modification program
6. No charge to apply-Free loan modification program
7. Your loan must have been taken out prior to January 1, 2009
8. Loan amount is less than $729,750
9. Facing a financial hardship situation

How do you apply for the Home Affordable Modification Plan and what is the approval process? Interested homeowners need to begin gathering the required paperwork and completing the required forms. Borrowers must be able to prove that they are facing financial hardship, detail their income and expenses clearly and provide all of the necessary paperwork to be considered as a candidate.

While many banks are participating in the new Federal Program some are not. MHA, or Making Homes Affordable, offers this list of current lenders taking part in the Obama federal loan modification program (in alphabetical order):

1. Bank of America.
2. Carrington Mortgage Services.
3. Chase.
4. CitiMortgage.
5. Countrywide.
6. GMAC.
7. Green Tree Servicing.
8. Home Loan Services, Inc.
9. Ocwen Financial Corp.
10. Saxon Mortgage Services.
11. Select Portfolio Servicing.
12. Wells Fargo Bank.
13. Wilshire Credit Corp.

More lenders are agreeing to participate in the federal loan modification program, so continue to check back for additions to the list. Ask your mortgage lender or bank if they are participating if you don’t see them listed above.

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