Recently the Home Affordable Modification Program has helped many homeowners avoid the ravages of the declining economy and the rising foreclosure rate. It has offered a breath of fresh air to what seemed to be a dire situation.

In February of this year President Obama put this initiative into effect in order to allow homeowners to keep their primary home. This program works by reducing the monthly mortgage payment a homeowner makes so that the mortgage fits into their budget.

It is amazing how much progress the mortgage bailout program has made and homeowners and lenders alike are jumping for joy over the benefits. It depleted the amount of their debt and took away a lot of the worries that have been weighting them down.

What homeowners are qualified?

Due to the massive number of homeowner’s and the fact that most lenders are not adequately staffed, now is the time to jump in and get help in paying down your mortgage. It will help you avoid foreclosure and the credit issues that will haunt you for the next several years. There are guidelines put into place that will let you know if you are eligible for the home affordable modification initiative.

One of the biggest factors will be when your mortgage started. Any home mortgage that originated before January 1, 2009 may be accepted.

Another major stipulation to being in this program is that your home has to both your primary residence and owner occupied. If the subject property in non-owner occupied, has someone else residing in the home and paying you rent then you cannot qualify for this modification. Your home also has to be the place that you currently live. The best way to prove this fact during the application process is by simply showing proof of residency that has a recent date, your name, and address.

Your monthly income must meet specific guidelines as does your current unpaid mortgage balance. It is important to speak with a professional before applying for help.

During the application process, there will be several factors being evaluated with your income, expenses and assets being one of the biggest aspects. Be patient and take care to include everything you own that has any real value. Failure to disclose anything could lead to future difficulties and keep you from qualifying for this program or government assistance in later years.

Don’t worry about not qualifying in case you are in the midst of a bankruptcy filing. This will not necessarily be a deal breaker for you. The important thing is that you are truthful and that you disclose all of the details during the application process.

The initiative will be ending the end of December 2012, but all payments will continue for several months after the finish.

The Treasury Department has offered a cash incentive to those who apply early for this initiative and make timely monthly mortgage payments. This is a way to encourage people to sign up and the government hopes this will reach everyone that is eligible.

The Home Affordable Modification Plan was put into place to help homeowners and their lenders avoid foreclosure and excessive mortgage payments. It is just one way that the government is trying to help resolve some of the major economic issues we are facing.

Discover if you can qualify before you try to get the Home Affordable Modification. Scott Pasinski has an excellent track record and has successfully helped thousands of homeowners with reducing their mortgage payments with the Home Affordable Modification.