Foreclosure Protection – Home Affordable Modification Program

Foreclosure Protection – Preventing Default – Home Affordable Modification Program-

On February 18, 2009, as part of the governments 789 billion dollar stimulus package, President Obama, unveiled the more then 75 billion dollar foreclosure prevention law intended to assist homeowners in danger of defaulting on their mortgages.
The U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development announced that troubled homeowners would have until December 2015 to apply for a mortgage modification under the Home Affordable Modification Program, which was originally slated to expire at the end 2013.

A homeowner is expected to qualify for a modified fixed rate mortgage so long as the homeowner can prove: 

The mortgage to be refinanced is on the principal residence.

The loan to be refinanced is a conforming loan.

The loan was originated, sold or guaranteed by Fannie Mae or Freddie Mac.

The homeowner is current on their house payments.

The homeowners first mortgage is 5% (or less) over the current value of the home.

The mortgage holder holding the second agrees to remain in the second position.

The borrower did not misrepresent their income or expenses in the original loan application.

Under the new program a homeowner already in default or at risk of imminent default is expected to qualify for a modified fixed rate mortgage so long as the homeowner can prove:

The mortgage to be refinanced is on the principal residence.

The mortgage payment exceeds 31% of your gross income, which, according to the plan, automatically puts you at risk of imminent default of your mortgage.

The mortgage loan is conforming.

The homeowner’s current debt-to-income ratio is higher than 38%.

The borrower did not misrepresent their income or expenses in the original loan application.

If you are in foreclosure trouble contact a homeowner or foreclosure counselor.

Mortgage Help (www.CFPB.gov)

Homeownership Preservation Foundation (www.995hope.org)

HUD Counseling Services (www.hud.gov) or (800) 569-4287

 

Leave a Comment

Your email address will not be published. Required fields are marked *