I came across this fabulous article this weekend in Money Magazine (May 2010.) In their REAL LIFE section Lisa Gibbs illustrates the real estate bust and how it has left many Americans struggling to ride out the tidal wave of upside down mortgages. The title of the piece "Drowning in Home Debt" is a fabulous article and I hope you get a chance to read it.
From that particular article a section caught my eye and I'd like to share it with you all:
WHAT AID IS AVAILABLE
(A spate of ferderal programs can help homeowners get out from under. Find out more at makinghomeaffordable.gov)
- FHA REFINANCE - What it will do: Refinance mortgages into FHA loans while cutting principal to 97.75% of the home's value, starting this fall. Who qualifies: Borrowers current on payments whose loans are not FHA-insured. The lender must agree to it.
- HOMEAFFORDABLE REFINANCE PROGRAM (HARP) - What it does: Refinances mortgages into loans with lower rates or better terms. Who qualifies: Up-to-date borrowers who are no more than 25% underwater and who have loans backed by Fannie or Freddie- if the lender agrees.
- HOME AFFORDABLE MODIFICATION PROGRAM (HAMP) - What it does: Changes loan terms to get payments below 31% of income. Lenders may also cut principal on homes more than 15% underwater. Who qualifies: Borrowers streuggling to make payments on loans under $729,000
- HARDEST-HIT FUND: What it will do: Give money to 10 worst-off states to design programs for struggling and underwater borrowers. Who qualifies: Details aren't out yet. Watch financialstability.gov for info.
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