The Obama Loan Modification Program aims to help several million homeowners who are near to foreclosure. The guidelines of this program require a lender who makes reduction of payments for the borrowers, eligible for modification and are one the risk of foreclosure.

The eligibility criteria for federal home affordable modification program

• The mortgage loan should not be previously modified under the HAMP plan

• If the default is foreseeable concerning the mortgage loan and the loans which are presently in foreclosure both are eligible for this program.

• The loan should be secured by 1-4 unit property and it should be the principal residence of the borrower.

• The property which secures the mortgage loan should not be left vacant or condemned.

• In the loan modification process the borrower should prove his financial hardships and he should also represent how he doesn’t have enough liquid assets to make his monthly payments. For this they have to give home loan modification program affidavit and should also provide the useful income documents.

• The document or papers regarding the supporting income of the borrower should not be more than 90 days old.

• The monthly mortgage payment of the borrower should not be more than 31% of his income.

• Anyone who is presently in an active court case is also eligible for the mortgage loan.

• A borrower who is actively involved in the bankruptcy proceeding is also eligible for the HMP plan.

• The unpaid principal balance of the borrower should not be more than $729,750 for a single unit building, $934,200 for two units, $1,129,250 for three units and $1,403,400 for a four unit building.

Home affordable modification program application guidelines only apply to the eligibility of the program and not for qualifying the real modification. For more information about this program one can contact Loansstore, a leading name in loan modification. One can get answers of all questions from here.