Are you one of the nine million homeowners that President Obama's Making Home Affordable program will help? Now it is very easy to see if you qualify.
On March 19, 2009, the U.S Department of the Treasury and the Department of Housing and Urban Development (HUD) launched a new website to help qualify consumers for the new loan modification and refinancing program. The new website MakingHomeAffordable.gov offers features such as interactive self-assessment tools and calculators so consumers can see both their eligibility and potential savings.
This effort to educate the public on the program follows the release of guidelines to lenders on March 4. Representatives from the Treasury, HUD, and an interagency task force met with mortgage loan servicers, investors, nonprofit housing counselors, and representatives of borrower advocacy groups to help them implement the program. Many lenders have already incorporated information about the program into their websites and are reaching out to borrowers who might qualify.
The Making Home Affordable program aims to help two groups of homeowners who are making a good faith effort to stay in their homes:
- Borrowers who want to refinance but are unable to because the value of their home has fallen.
Aimed at assisting five million homeowners with loans backed by Fannie Mae or Freddie Mac, the refinancing arm of the program will help those whose payments are up-to-date but who might not qualify for bank financing.
- Borrowers who cannot make their mortgage payments because their interest rate has increased or their income has fallen.
The loan modification part of the program seeks to help four million homeowners who are delinquent on their payments but have income sufficient to pay a reduced payment equivalent to 31% of their monthly income.
When homeowners come to the user-friendly site, they choose which program they are applying for, answer 
a few simple questions, and immediately receive an answer as to whether they may qualify. Those who qualify are directed to their lender or mortgage servicer and provided with a list of documents they will need to put the program into motion. Those who do not meet program qualifications are urged to contact their mortgage servicer or a HUD-approved counselor. There is no cost for qualified homeowners to participate in the program.
In the near future, the site will include a list of lenders who are participating in the program.
If you are a homeowner in financial distress, please contact Karen Breen Elia or Louis Elia at ChicagoCityHomes for help. They are Certified Distressed Property Experts (CDPE).
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