Obama’s Home Loan Help Goes Online
The Obama Administration has made a commitment to help troubled homeowners. As part of fulfilling that commitment, a new web site from the Treasury Department and the Department of Housing and Urban Development provides great information and assistance for homeowners interested in the administration’s Making Home Affordable loan modification or refinancing programs.
With the interactive self-assessment tools available on MakingHomeAffordagle.gov, borrowers can find out if they are eligible to participate in the Making Home Affordable program and even calculate the monthly mortgage payment reductions they could realize.
The refinancing element of the Making Home Affordable plan is intended to help homeowners who are keeping current on their mortgage payments, but cannot get refinancing at advantageous interest rates because their homes have dropped in value since they got their loans.
If you are considering refinancing, you need to know that in order to be eligible, the first mortgage loan on your home cannot exceed 105 percent of the home’s current market value. For example, if the market value of your home is $300,000 and you owe less than $315,000, you may qualify.
Loan modifications are for people who can no longer make their mortgage payments, because their family income has been reduced or because the interest rates on their loans have increased. The goal of the loan modification is to reduce the mortgage payment to no more than 31 percent of the homeowner’s gross income. That is, income before taxes. A calculator is provided to show the homeowner an estimate of the new, lower mortgage payment.
To qualify for a loan modification, you will have to demonstrate to the satisfaction of the Treasury that you can make your modified loan payments for at least the first three months. If you make the first three payments on time, your modified interest rate will remain fixed for the next five years.
For all the program details, tips and pitfalls, be sure to carefully read the excellent Frequently Asked Questions collection.
Also See: Economic Stimulus Breaks for Homebuyers, Families and More
Comments
After trying two years to get my loan re-set to more affordable payments, still leaving ample interest earned by my loan company, Wachovia, I am still told by Wachovia that I have to wait for Government assistance package so Wachovia can help! What a JOKE! I’ll try to sell or file bk.
theprogram didnt help me and i have no where else to go with my family no program to help ididnt leave my house for a different house like alot of people did
finished 3 months trial loan mod with MHA thru Chase. Now they are saying that the system is flawed. Have to start all over again since now info is outdated. MY thinking is if they put us all off eventually interest will be back up homes start appreciating and the banks are happy with all the bailout money they are filling there pockets and all of our tax money which we all have been paying goes to the Govt banks and investors. Nice little plan. just like wall street AGI Enron car factories. They all benefit from the TARP and the loan modifications guidelines are so strict that no one will be able to qualify. If all homes go into foreclosure eventually investors buy them all up for a very small price and then we will be so lucky to rent them back. Lucky lucky us.
I,m disabledw/4children I,m first time homebuyer bought this house cash then Home LoanInvestment of Warwick,R.I told me to borrow money against home to repair credit!they lied AT9.25%adjustable I,m going down since eletric bill Doubled!went to Funding FIGHT.Net for loanmod !being disableds hard to keep upnow they won,t return no calls since they have my money att,gen,won,t helpFunc,Fight.net told me not to pay mortgage either now7mo,behind SOME ONE PLEASE?!HELP ME R.Ferrara,PH#518-291-4494
Mr. Ferrara,
FundingFight.net did the same to me then disappeared with my money. The BBB of NY is investigating them on my behalf. I suggest you file a claim against them as well.
Best of luck to you; I hope your situation improves.
I would like to express that i since all the frustration you all are going thru. My family and I are hanging on by a thread. the banks are doing everything that can to keep people in their loans. I have 3. A lot loan(arm), 1st and 2nd (arm)on our house. Well we could not build our new house so the 2nd came Due. I tried to get the lot loan and 2nd converted to one fix loan and they would allow me to get out of lot loan. this loan comes due Oct 2010. I’m just mad so I have two fixed loan and the one arm coming due and rates may increase pushing over my income.
We always paid our bills on time but recently like so many others we were having a hard time paying all of the bills. We have been trying to get a home loan modification thru Chase since Jan 2009. We’ve completed our 3 month trial period in which we made payments on time and are still being charged late fees and interest. When we started the loan mod we were told by Chase not to make a payment while they were processing our loan, we are now $15k behind on our loan, penalties and interest. It’s outragious just to think about it, its like the banks want you to get in more debt so they can make a profit off of the hard times people are having; while they sit on the bail out money from the government. Now we have to re-submit our paperwork so everything on file will be “current”, all of this b/c the bank is dragging their feet. What happens if we don’t qualify??? I’m beyond disgusted, I’m just tired of it all! I don’t think the right thing is to walk away but after going thru this I can certainly see why some people resort to doing that.