Making Home Affordable Plan
On February 18, 2009, President Obama announced his Making Home Affordable Program (MHA). This program was originally designed to help up to 7-9 million families avoid foreclosure. What the program does is it allows the federal government to get involved in your mortgage if it's owned by Fannie May or Freddie Mac. The help comes in the way of a restructuring or refinancing of your mortgage that's owned by them.
The program is designed to keep people in their homes by helping responsible homeowners behind on their payments or at risk of defaulting. It also helps prevent neighborhoods and communities from falling values with foreclosure after foreclosure.
To see if you are eligible for the Making Home Affordable Plan you can visit the governments website Making Home Affordable. They will ask you a series of questions such depending on whether you'd like to refinance or get a loan modification.
Some of the questions from this program may be:
Home Affordable Refinance:
If you are a homeowner who is current on your mortgage payments but unable to refinance to a lower interest rate because your home value has decreased, you may be able to refinance.
1. Are you the owner of a one- to four-unit home?
2. Do you have a loan owned or guaranteed by Fannie Mae or Freddie Mac?
3. Are you 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.
4. Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house? You may be eligible if your first mortgage does not exceed 125% of the current market value of your home. For example, if your property is worth $200,000 but you owe $250,000 or less on your first mortgage, you may be eligible. The current value of your property will be determined after you apply to refinance. If unsure, click "Yes" for Question #4 and go to Refinance next steps.
Home Affordable Modifications:
If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.
Some of the questions under this program may be:
1. Is your home your primary residence?
2. Is the amount you owe on your first mortgage equal to or less than $729,750?
3. Are you having trouble paying your mortgage? For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan or have you suffered a hardship that has increased your expenses (like medical bills)?
4. Did you get your current mortgage before January 1, 2009?
5. Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) more than 31% of your current gross income?
For more detailed information visit their website by clicking here.
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