By Marcie Geffner - Bankrate.com
Borrowers who can't afford their mortgage payment may want to take a look at the Home Affordable Modification program, which is part of the Obama administration's Making Home Affordable plan.
The Home Affordable Modification program creates a uniform process for loan servicers to modify existing mortgages for homeowners who meet the following two conditions:
• They spend more than 31 percent of their income on monthly housing costs.
• They already are delinquent or in imminent danger of default because of a major change in their financial situation.
The rules are complicated. The federal government has issued top-level guidelines, but Fannie Mae and Freddie Mac have their own specific guidelines. In addition, lenders, loan servicers and mortgage insurers may have their own requirements as well.