Finally Homeowners Get a Helping Hand, Program details here!

By
Real Estate Agent with Keller Williams Greater Cleveland West

Homeowners were lent a hand this week by the Obama Administration's newest effort to help families remain in their homes. The "Making Home Affordable" program was created to help as many as 9 million homeowners who want to stay in their homes, but are struggling with their finances.

 

Here is a good link http://www.financialstability.gov/makinghomeaffordable/index.html

  

Modification program

 

What is it?

 

Homeowners who are having trouble affording their mortgage payments either because of issues such as job loss or because of resetting interest rates may qualify for new, more affordable loans.

 

Do I qualify?

 

• You must live in the home.

 

• You don't already have to be behind on payments.

 

• The loan balance can't exceed $729,750.

 

• It's aimed at homeowners who have lost a job, had their payment jump, been hit with higher expenses, owe more than the home is worth or are otherwise at risk of default.

 

• The loan must have been originated before Jan. 2.

 

Example:

 

You bought a $200,000 home three years ago with a $190,000 first mortgage and an adjustable rate. Your payment was $1,170 a month. Now it's jumped to $1,530. Your gross monthly income is $3,700. Your monthly payment could be reduced to 31 percent of your gross, or $1,147 a month. Or, if your payment was still $1,170 but your income had dropped to $2,700 a month, your mortgage payment might drop to $837.

 

What do I do?

 

Gather pay stubs, last tax return, second mortgage data, and balances and monthly payments on loans and credit cards. Also summarize why your finances are stressed. Then call the company where you make your payments. Deadline is Dec. 31, 2012.

Refinance program

 

What is it?

 

Homeowners who haven't been able to refinance because their homes have lost value may now be able to get new loans at today's low fixed rates and get rid of higher fixed- or adjustable-rate loans.

 

Do I qualify?

 

• You must live in the home.

 

• You can't have been 30 days late in the last year.

 

• Your mortgage can't exceed the current value of your home by more than 5 percent.

 

• The loan may be serviced by your bank, but it must be held by Fannie Mae or Freddie Mac.

 

• It's OK if you have a second mortgage in addition to a first mortgage that's 105 percent of the current value.

 

Example:

 

You bought a $200,000 home three years ago with a $180,000 first mortgage. The balance now would be about $172,000. To refinance today with 20 percent equity, no private mortgage insurance and without an FHA loan, you'd need your home to be worth $215,000. But maybe it's lost 18 percent of its value, so it would be worth $164,000 today. Under this program, you may still be able to refinance at the best rate.

 

What do I do?

 

Gather pay stubs, your last tax return, second mortgage data, and balances and monthly payments on loans and credit cards. Then call the company where you make your payments. The deadline is June 2010.
 

**For details for borrowers from the Administration on Obama's "Making Home Affordable", please see the link below.
http://www.financialstability.gov/makinghomeaffordable/index.html

 

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  1. Maureen McCabe 03/08/2009 08:06 AM
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Rainmaker
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Vanessa V. Simmons
Real Living HER - Columbus, OH
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Great information and thanks for the link I will pass this on...

Mar 10, 2009 12:15 AM #1
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