Making Home Affordable, a comprehensive plan to stabilize the U.S. housing market, was first announced by the Administration on February 18. The three part program includes aggressive measures to support low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac; a Home Affordable Refinance Program, which will provide new access to refinancing for up to 4 to 5 million homeowners; and a Home Affordable Modification Program, which will reduce monthly payments on existing first lien mortgages for up to 3 to 4 million at-risk homeowners. Two weeks later, the Administration published detailed guidelines for the Home Affordable Modification Program and authorized servicers to begin modifications under the plan immediately. Several lending institutions, including the five largest, have now signed contracts and begun modifications under the program.
Eligibility:
- Primary Owner of 1-4 Family Home Unit Loans Owned by Fannie or Freddie Mac
- Current mortgage dated prior to January 1, 2009
- Special provision for families with high total debt levels
- Amount you owe on your first mortgage is less than or equal to $ 729,750
- In or at Risk of Default or Foreclosure
Current on your payments,but Unable to Refinance due to Home value Decline
Benefits:
- Lowering of monthly Mortgage payments,
- Take advantage of current rates
- Change or extension of Mortgage Terms
- $ 5,000 Success Fee over 5 years for making timely payments applied toward reducing your principal
- Offset Market Declines(80% rule)
- 2% mortgage interest rate floor for those with Hardships
- Foreclosure relief
Information Needed for Assistance:
- Information about your mortgage, listed on your monthly mortgage statement and
- Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
- Your most recent income tax return.
- 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
- Hardship Explanation
