Home Affordable ModificationMaking Home Affordable Program for Freddie Mac-owned Mortgages

If you’re a homeowner who is behind in your mortgage payments, in the foreclosure process, or is current on your payments but are about to default as a result of a recently experienced hardship, you may be able to modify your loan to a lower rate through the Home Affordable Modification Program.

A Home Affordable Modification can help you by bringing your monthly mortgage payment to no less than 31 percent of your gross (before tax) monthly household income by:

• Reducing your interest rate, and if necessary
• Extending your loan term (i.e., from 30 years to 40 years), and possibly
• Forbearing (deferring) a portion of the principal amount you owe until the loan is paid off, and waiving the interest on the deferred amount

How Can I Qualify?

If your mortgage is owned by Freddie Mac, you may be able to obtain a Home Affordable Modification through this program if:

• You’re late on your current mortgage payment
• You’re currently making your mortgage payments on time, but your mortgage is no longer affordable because of a hardship that you can document
• You spend more than 31 percent of your pre-tax income on your mortgage payment (including principal, interest, taxes, insurance, and homeowners association dues)
• You took out your mortgage on or before January 1, 2009
• Your mortgage is for a 1- to 4-unit property, and you’re currently living in one of the units as your primary residence

Homeowners with mortgages that are not owned by Freddie Mac or Fannie Mae may be eligible for a Home Affordable Modification if your mortgage lender, also called “servicer,” has voluntarily agreed to participate in the program. 

Find out if your lender participates in Making Home Affordable.   If you don’t see your lender’s name listed, just ask them if they participate.

What to Expect

The process of obtaining a Home Affordable Modification may require a lot of back and forth between you and your lender – so please try to be patient and return calls and/or documents quickly.   

• If you’re late on your mortgage payment, you may receive a letter from your lender offering help. Follow the instructions, including gathering and completing the materials they sent you.
  
  These materials could include a cover letter explaining the program and requesting certain income documentation, a Hardship Affidavit, tax returns, and IRS Form 4506-T, authorizing the lender to pull your tax transcript, a borrower financial information document, and other documentation.

• If you’re eligible, your lender will offer you a three-month trial period at a new mortgage payment amount. To successfully complete this trial period, you will need to make three monthly payments on time at the new payment amount.
• Once you’ve successfully completed the three-month trial period, your mortgage lender will permanently modify your mortgage.

Freddie Mac has directed its lenders/servicers to suspend foreclosures on mortgages we own for all homeowners who are being evaluated for or are currently in a trial period for a Home Affordable Modification.

What If I Don’t Receive a Notice from my Lender?

Even if you haven’t been contacted by your mortgage lender, you may still be eligible for a modification under the program. For instance, if you’re current on your mortgage payments but you can prove a hardship (such as divorce, job loss, reduction in salary, etc.) that will make it difficult for you to continue to make your monthly payments in the future, you may be eligible.

If you believe that you might be eligible, continue to make your monthly mortgage payments if at all possible. At the same time, contact your lender to start the process of applying for a Home Affordable Modification.

What If I Can't Qualify?

If you don’t qualify for a Home Affordable Modification, there are several other options that may be available for you to help you avoid foreclosure.