A fund of $75 billion has been established to assist American homeowners struggling to make their monthly mortgage payments under the Homeowner Affordability and Stability Plan created by President Obama. Qualified buyers must meet certain eligibility requirements in order to take advantage of loan modification options. Below are answers to the ten most frequently asked questions.

1. Does my mortgage have to be delinquent in order for me to qualify? No. You can apply proactively if you sense that you will soon be unable to meet your financial obligations and you can show that an extenuating circumstance has caused hardship. Extenuating circumstances might include job loss, interest rate increase, medical bills, or illness.

2. I'm already facing foreclosure, can I qualify? Loan modifications are intended to provide assistance to homeowners unable to make their monthly mortgage payments by lowering the monthly payment. This solution is a win-win for both homeowner and lender and a favored option over foreclosure.

3. What are the qualifications for the Homeowner Affordability and Stability Plan? The loan must be a first mortgage on the homeowner's primary residence, the loan must be insured by Fannie Mae or Freddie Mac and the current monthly mortgage payment must exceed 31% of your gross monthly income.

4. Is there a charge for the loan modification plan cost? No, there is no fee or charge for the program, it is free.

5. Does my modification application have to be with my current lender? No, there are a number of mortgage lenders voluntarily participating in the loan modification program with whom you may apply.

6. What if I've already applied for loan modification with my local bank? If your application is already pending, ask your lender about considering it under the guidelines of the Homeowner Affordability and Stability Plan.

7. What if my house is worth less than I owe on it? At your bank's discretion, the program has provisions for principal balance reduction.

8. How do I know if Fannie Mae or Freddie Mac is on my loan? You bank can tell you.

9. What information does my bank need? They need a hardship letter and a financial statement.

10. How do I apply for loan modification? Contact your local bank.

Federal guidelines must be met in order to get bank approval for loan modification. Take a moment to find out which of your local banks are participating in the program and apply now.