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Making Home Affordable Homeowner's Guide
Homeowner Affordability & Stability Program On Wednesday, February 18, 2009, President Obama announced his new Homeowner Affordability and Stability Plan to help troubled homeowners avoid foreclosure. This plan will offer assistance up to 9 million homeowners and applies only to primary residences. The first component of the plan allows homeowners who are current to refinance an existing Fannie Mae or Freddie Mac conforming loan with a loan-to-value ratio up to 105 percent. The second component addresses homeowners who are at risk of foreclosure on their mortgages, but they do not have to be delinquent. The government will work with the lenders to ensure that monthly mortgages do not exceed 31 percent debt-to-income ratio. Furthermore, the government will seek to create clear and consistent guidelines for loan modifications. The details of the Homeowner Affordability and Stability Plan were released on Wednesday, March 4, with the introduction of the Making Home Affordable plan. Please look at the appropriate charts contained in the free report above, to read about the summary of these new programs. The plan has two primary goals: 1. To help homeowners in existing Fannie Mae or Freddie Mac loans that are current on their mortgage payments to refinance and take advantage of today’s lower interest rates. Many of these homeowners are unable to refinance because of lost appreciation in their homes due to the continuing decline in home prices. These homeowners still have equity in their home, just not the necessary 20% to get a refinance. Under the Administration’s plan, Fannie and Freddie will be allowed to refinance qualified homeowners up to a 105 percent loan-to-value of the current value of the home. 2. To help homeowners who are at risk of foreclosure.The Administration is offering loan servicers and investors government assistance to help offset the cost of modifying qualified homeowners into affordable mortgages that will allow them to keep their homes. This may be done by reducing the mortgage interest rate, extending the term of the loan, principal forbearance, and/or principal cramdown. This program is voluntary and the servicers must agree to contracts with the Treasury to participate. In addition, the Government warns homeowners to beware of foreclosure rescue scams:
To find out if you qualify for either the Making Home
Affordable Refinancing Program or the Loan Modification Program
please click on the appropriate link
below:
The following information is intended for homeowners seeking information on existing mortgage workout programs. In general, the loan modification programs on the chart (see free report above) and consumer information sheets (see free report above) are intended for primary residences only. The free report above contains a Lender Comparison Chart (3/24/09) on existing mortgage workout programs (revised 3/24/09). The chart is a compilation of programs offered by the larger lenders and government entities. If a specific lender or loan servicer is not on the chart, homeowners may wish to contact the lender or loan servicer to determine if a workout program is available. Homeowners having difficulty meeting their mortgage obligation or interested in finding out more about a loan modification program should start by contacting their lender. Prior to calling a lender or loan servicer, homeowners should have the following information available: . Loan number . Income information and documentation . Most recent mortgage statement . Bank statements . Letter demonstrating financial hardship Mortgage loan modifications typically are handled on a case-by-case basis. szefk6hgqi > |
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