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In recent years the economy has nearly sucked the life out of most homeowners and the rate of foreclosures is rising at an incredible rate. Thankfully, there is now a new ray of light called the Home Affordable Modification Program.

In recent years the economy has nearly sucked the life out of most homeowners and the rate of foreclosures is rising at an alarmingly rapid rate. Thankfully, there is now a new spark of hope called the Home Affordable Modification Plan.

This modification program was implemented in March by President Obama and is meant to help Americans hang on to their primary home. The main concept of this initiative is to both reduce the homeowners monthly mortgage payment to a level that the lender can agree to but more importantly, a payment that the homeowner can fit into their budget.

This plan has the potential to make great strides in helping both the lenders as well as the homeowners, and seventy five billion dollars has been allotted for it. It not only is it designed to reduce personal debt, but it also helps in alleviating the stress that homeowners facing potential ruin are feeling.

Who is eligible for this program?

If you have found yourself in financial despair over mortgage lenders who are threatening foreclosure then the best thing you could do is quickly apply for this program. In the process you can also protect your future credit score. There are set limits that will help you find out if you are are eligible.

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

Another major stipulation for qualifying for this plan is that your home has to both owner occupied and your primary residence. 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 a piece of mail that has a recent date, your name, and address.

How much money you make each month needs to fall into a specific area and guidelines. Speak with a professional before you continue the process.

One of the first things that will be verified during the process will be your expenses, income and assets. It is important that you cooperate fully through the entire vetting process and completely disclose everything of value that you are currently in possession of. This will save you a lot of future hassles and ensure that you are getting help and mortgage payments you can afford.

If you are going through a bankruptcy, you may still qualify. These kinds of suits are common during times of financial turmoil and may not exclude you from the program.

It is important that you apply for this modification soon because there is no telling how long interest rates will remain low and the initiative will then be cut off. However, there will still be payments processed after this time.

One of the most interesting facets of this initiative is that the government has decided to include a cash incentive for homeowners who apply early and able to make timely monthly mortgage payments.

The Home Affordable Modification Initiative 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.