Can you get an Obama loan modification?
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• Unpaid interest, property taxes, insurance premiums and other costs paid by the lender on the borrower's behalf may be added to the loan balance, subject to state law.

•   Unpaid late fees must be waived.

•   The borrower must complete a trial period of three or four months before the loan modification becomes permanent.

•   The interest rate on the borrower's new loan will be fixed for five years. After that, the rate can increase up to 1 percent annually, subject to a cap of the market interest rate on the day the loan was modified.

•   Negative amortization is prohibited.

•   If the borrower has a second loan, the lender may modify or eliminate that loan as part of the first-loan modification process through the Making Home Affordable Second Lien Program.

• An escrow account for property taxes and insurance is required, subject to state law.
• Borrowers will not be charges any fees or costs for the loan modification.
• Borrowers may be offered the Hope for Homeowners program as an alternative. This program reduces the borrower's loan balance so he or she will be able to refinance with a new loan guaranteed by the Federal Housing Administration, or FHA.
• Borrowers who make payments after loan modification will receive "success incentives" paid by the U.S. Treasury. These incentives accrue monthly and are paid annually. The payments will be applied to the loan balance and could total as much as $5,000 over a five-year period.

Take our quiz to see if you qualify for mortgage modification.

How to apply
Borrowers should contact their loan servicer to find out whether they qualify for a loan modification. A list of loan servicers that have signed formal agreements with the federal government to offer the Home Affordable Modification program is found at the Making Home Affordable Web site.

• Borrowers should have their loan or Social Security number handy and are encouraged to gather other documents before they call the loan servicer. Required documents may include:
  -- Paycheck stubs or other income-related documents.
  -- Bank account statements.
  -- Most recent income tax return.
  -- Information about the borrower's assets.
  -- Information about any second loan secured by the property.
  -- Account balances and monthly minimum payments on credit cards, student loans, car loans and other debts.
  -- Property tax statement.
  -- Proof of homeowner's insurance.
  -- A letter that describes why the mortgage payment is unaffordable.
• Borrowers are encouraged to consult a nonprofit housing counselor certified by the U.S. Department of Housing and Urban Development. Counseling may be required for borrowers who have a lot of debt relative to their income. This service is free.
• Borrowers are encouraged to complete the short self-assessment questionnaire at MakingHomeAffordable.gov to obtain a preliminary indication of whether they may be eligible.
• The Home Affordable Modification program will end Dec. 31, 2012, unless that deadline is extended.
• More information may be found on the federal government's Making Home Affordable Web site, Fannie Mae's Web site and Freddie Mac's Web site.

Loan servicer contact information
Loan servicers' Web sites vary widely in terms of how much information they offer about the Home Affordable Modification program.

Some Web sites contain a summary of the basic program requirements, links to relevant government Web sites, telephone and fax numbers, and instructions on how to submit a financial hardship request. Other Web sites don't mention the Making Home Affordable program or offer only limited contact information.