The first thing you have to understand is what kind of loan do you have. Freddie Mac, Fannie Mae, Conventional, FHA, or VA. This is key to the loan. Obama's plan only backs government loans which are Fannie Mae and Freddie Mac. These loans are the only loans that are included in the Making Home Affordable Plan. To find out what kind of loan you have call 1-800-7fannie or 1800-Freddie. If you are not a Fannie or Freddie backed loan you can still qualify for a Loan Modification. Conventional, FHA, or VA loans are backed by investors. You have to call your servicer which is your Mortgage Company and get the details for that modification. For more detailed information go to www.operationrest.org.

Qualifying

There is so much misinformation and the process is so detailed that many people give up. The fact is many people do qualify but you have to understand how to get through the process. First you have to have income and be able to afford your home. What a modification does is take an actual picture of what you can afford now and usually lowers your interest rates and payment.

You have to have missed one or more payments
The amount owed on your first mortgage is less than $729,750
The mortgage had to be purchased before Jan 1, 2009
Finally you Principal, Interest, Taxes, insurance, homeowners dues have to be more than 31% of your total income.

Process

Once you understand if you qualify the modification process can begin. Follow the guidelines in detail. If it seems overwhelming do it in stages. Remember you are fighting for your home and it's worth the fight. Stay in contact with your Mortgage Company after you submit the paper work. They tend to lose or misplace paper so you want to follow through just for an update.

Checklist

Information about your first mortgage (account numbers, loan balance,servicer)
Information about the second mortgage if applicable
Account balances (financial sheet of expenses)
Your most recent tax return
Information on your assets, savings, money market, etc
recent information on your income your gross amount(before taxes) and your net (after taxes)
A letter describing what happened to put you in this position (hardship letter) find an example at www.opertionrest.org

Counselor

Find a trained counselor to assist you. Beware of scams. If they want money for their services hang up immediately. One source that I found that gives you detailed information is operation restoration. This is an Atlanta based non-profit mission who will help guide you through this most difficult process. They help people all over the country and they have a proven 99% success rate.