Is housing counseling required for a modification under the Home Affordable Modification Program?
A. Although it is not required, if you are behind, or close to being behind on your mortgage, we strongly encouraged you to contact a loan specialist to help you understand all available options and create a workable budget. However, counseling for homeowners is required if your total monthly debts are very high in relation to your incomes. We will analyze your monthly debts, including the amount you will owe on the new mortgage payment after it is modified, as well as payments on a home equity loan or line of credit, car loans, credit cards, alimony or child support. If the sum of monthly expenses is equal to or more than 55% of your gross monthly income, you will be required to meet with a HUD-approved housing counselor as a condition of getting a modification.
Related Questions
- Im already working with my servicer or a housing counselor on a loan workout. Can I still be considered for a Home Affordable Modification?
- Can my Federal Housing Administration (FHA) loan be modified under the Home Affordable Modification program?
- Is housing counseling required under the Making Home Affordable program?
