The new website for the new federal initiative, “Making Home Affordable”, is now live. The site walks homeowners who are in trouble through the process of finding out if the 270 billion dollar federal program is available to the homeowner.
Just thought you would like to know if you know anyone who is in trouble.
Under the refinancing section, eligible first mortgage loans can’t exceed 105 percent of the current market value of the home. For example, if your home is worth $200,000 but you owe $210,000 or less, you may qualify. There’s no help to renegotiate a second home loan.
The second prong is aimed at homeowners who are struggling to make their monthly mortgage payments because their interest rates have increased or their incomes have been reduced. This part aims to modify terms to get homeowners to a point where their monthly first lien mortgage payment is not more than 31 percent of their gross, or pretax, monthly income. In my view, affordable would be to use a person’s net, or take-home, monthly income, but that would just make too much sense. washingtonpost.com.
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{ 5 comments… read them below or add one }
The loan modification program may help a few people in Las Vegas, but the refinance program doesn't apply since most homes are way above 105% LTV.
It will be nice to see some stability come back to the market, but is this really the way to go?
It will be interesting to see how this will affect the market.
I want to know what most people will do when they find out they don't qualify for this program. There is still much work to be done, but I guess this is a start.
I found the best eligibility info on this Plan on http://www.homeaffordplan.com
They had a better calculator that the Treasury, told me what I could qualify for and directed me to Citibank's application for the program. My application is on track for approval.
I'd recommend trying the Treasury calculator and comparing your results on http://www.homeaffordplan.com