1)                  Is the property Owner-occupied, 1-4 units?

2)                  Is the 1^st mortgage loan balance under $729,750 (1 unit), $934,200 (2 units), $1,129,250 (3 units), $1,403,400 (4 units)?

3)                  Was the loan originated on or before January 1, 2009?

4)                  Do you have income that will support monthly mortgage payments at 31% of gross monthly income?

5)                  The loan is not VA-insured?

6)                  Do you have a Hardship such as a loss of income, change in circumstances (such as divorce), or increase in expenses? and

7)                  Is your current 1^st mortgage PITIA payment is over 31% of your gross monthly income?

If you answered “yes” to each of these questions, you may qualify for President Obama’s Loan Modification Program.  Your next step is to determine if you have sufficient income to support your mortgage payment at 31% of your gross monthly income. 

General disqualifiers:

• Your only source of income is unemployment insurance.
• Your property is an investment property.
• Your only source of income to pay the mortgage is a part-time job.
• You have more than 30% equity in your property

You have large amounts of cash in your bank accounts (generally talking about 5 figure amounts and are not talking about retirement accounts).  A possible exception here is if you are at a monthly negative cash flow and your cash will be depleted soon because of your current mortgage payments.