Making Home Affordable Plan Part 1
Many American home owners are facing devaluating property values due to the housing crisis that has affected millions of people across the nation. To add to the crisis, many households are faced with the event of having one of the two income earners lose their jobs that is adding to the financial hardships of many Americans as well.
In lieu of the financial trouble this nation is facing, more and more home owners are finding them selves in serious financial trouble where they are not able to keep up with the mortgage payments anymore and are falling towards foreclosure.
In the event of this, more and more people are looking for ways to refinance their home while in foreclosure to try to help keep their homes.
mortgage assistance
There are basically 2 ways you can go about fixing the issue. You can go back to the bank and ask for a new loan, or more commonly you will try to get a loan modification. Due to the falling property values, many are left with homes that are now worth less that what is actually owed on the mortgage, creating an even more dire circumstance for refinancing or loan modification.
However there is hope. Fortunately those who find themselves in that situation may still receive government assistance.
The Making Home Affordable Plan is a program that has been set by the Obama administration to help homeowners facing foreclosure. The way the plan works is that if you are still working, yet however you foresee a increase in payments due to a reset that is coming in the near future, it will be possible to refinance your property and home up to one hundred and five percent of the value of the property.
The only thing is that in order to qualify, your loan must be backed by either Fanny Mae, or Freddie Mac. It is possible however to get a loan modification or refinancing if you don’t have a loan backed by these two institutions, the best thing to do is contact your existing lender and see what option they may have available to you.
For those who do qualify, there are 2 basic plans within the program, you can either refinance, or you can get a loan modification.
The refinance is for those who are not necessarily in financial trouble yet, but have been faced with situations that may very well cause financial hardship in the future.
The loan modification part is for those who are already in foreclosure and are at serious risk of losing their homes. Some of the criteria in order to qualify, is that you can only modify or refinance your principal residence. You will not be able to refinance a secondary home such as summer cottage, or refinance a revenue property.
Another thing is that you home must not be a jumbo mortgage, that is any mortgage loan that is over $729,750 , if this is the case you will not be qualified for the plan.
These are just a few general areas that are touched upon in regards to the plan…Stay tuned as I will elaborate more on the Making Home Affordable Plan in the next coming articles.
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