Making Home Affordable
“Making Home Affordable”
President Obama’s Plan
“Making Home Affordable” is the new plan unveiled on March 4,2009 by President Obama and the federal government. This is the same $75 Billion program you may have heard of recently in the media. This program is made up of two components.
The first is: Refinance
1. Who’s eligible? You may be eligible if you:
· Are the owner occupant of a one to four unit home.
· The loan on your home is owned or controlled by Fannie Mae or Freddie Mac (Don’t know? See below)
· You are current on your mortgage payments (current means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months.)
· You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house, and
· You have a stable income sufficient to support the new mortgage payments.
2. How do I know if my loan is owned or has been securitized by Fannie Mae or Freddie Mac? You should call your mortgage servicer or lender (the organization to whom you make your monthly mortgage payments) and ask about the program. Both Fannie Mae & Freddie Mac have established toll-free telephone numbers and web submission processes to make this data available.
· For Fannie Mae, call 1-800-7FANNIE 1-800-7FANNIE 1-800-7FANNIE 1-800-7FANNIE (8am to 8pm EST)www.FannieMae.com
· Freddie Mac, call 1-800-FREDDIE 1-800-FREDDIE 1-800-FREDDIE 1-800-FREDDIE (8am to 8pm EST)www.FreddieMac.com
Modification
1. Who qualifies for a Home Affordable Modification?
To apply for a Home Affordable Modification, you must:
Be an owner-occupant in a one to four unit property, and have
· An unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties (consult your servicer),
· A loan that was originated before January 1, 2009,
· A mortgage payment (including taxes, insurance, and home owners association dues) that is more than 31% of your gross (pre-tax) monthly income, and
· Have a mortgage payment that is no longer affordable, perhaps because of a significant change in income or expenses.
If you answered YES to all of these questions, you are eligible to apply for a Home Affordable Modification. Only your servicer will be able to tell you if you qualify.
2. How do I know if my servicer is participating? Are all servicers required to participate? Servicer participation in the program is voluntary. However, the government is offering substantial incentives to servicers and investors, and it is expected that most major servicers will participate. As contracts are signed, a list of participating servicers will be available on the Internet atwww.FinancialStability.gov.
The following is the information that you would be expected to provide:
· Information about your first mortgage, such as your monthly mortgage statement.
· Information about any second mortgage or home equity line of credit on the house.
· Account balances and minimum monthly payments due on all of your credit cards.
· Account balances and monthly payments on all your other debts such as student loans and car loans.
· Your most recent income tax return.
· Information about your savings and other assets including recent pay stubs if you receive them or documentation of income you receive from other sources.
· It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.
For more information on who this program
will assist go to:
http://makinghomeaffordable.gov
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