Struggling Home Owners Loan Modifications Turned Down Because Too Affordable

You know there is something wrong with a system when those that need it don?t qualify. This seems to be the case with the Home Affordable Modification Program. One of the main reasons home owners are turned down is because their loans, by the Home Affordable Modification Program standards, are too affordable. How is it decided if a loan is too affordable to qualify? One of the main factors is the percentage of the household income that is dedicated to pay the mortgage. If 31% or more of the household income is set aside for the mortgage and other criteria is also satisfied then the home owners qualifies for the loan modification. However if the percentage of the household income is lower it is too bad. When this criteria was decided it seemed a reasonable percentage of a household income.