Financial Difficulties

• Before qualifying for a mortgage modification, you have to prove to your lender that you're struggling to make your monthly payments by showing that you've suffered a serious financial setback. Your or your spouse might have lost a job; your boss may have slashed your working hours; perhaps you injured yourself on the job and have been unable to return to work. All of these setbacks can make it a burden to pay your monthly home loan. To prove your financial hardship, make copies of such paperwork as your last two paycheck stubs, most recent federal income-tax return, and bank savings and checking account statements.
  
  

Your Home

• Under the government's mortgage-relief program, you must be seeking a loan modification for a mortgage attached to a primary residence. You can't seek relief for a home loan that you might have on a vacation or second home. It's important to note, though, that mortgage lenders can, without the assistance of the Home Affordable Modification program, modify a loan on second or vacation homes.
  
  

Your Loan

• As of January 2011, the outstanding principal balance on your existing mortgage loan can be no higher than $729,750 if you want to participate in the government's mortgage-relief program. Plus, you must have taken out your loan on or before January 1, 2009. Even if you don't meet these qualifications, you can petition your mortgage lender to modify your loan. Your lender simply has to do this without earning any of the financial incentives that it receives for modifying a loan through the government program.
  
  

Percent of Income

• Your total mortgage payment each month --- which includes your principal, interest, taxes and insurance --- most be more than 31 percent of your gross monthly income. This is another piece of evidence showing your mortgage lender that your mortgage loan payment has become a financial burden.