Borrowers Struggle to Get Help
According to a report from foreclosure-prevention counselor NeighborWorks America, getting help through the Obama administration’s mortgage-assistance program has been an impossible challenge for thousands of applicants, reported USA Today.
Home owners who apply for mortgage modifications can expect to wait 45 to 60 days before hearing anything from their mortgage service company.
To read more about Making Home Affordable Program: Refinancing and Modifications on this Blog.
Here is some other basic information:
- The refinancing option is available only for certain loans owned or securitized by Fannie Mae and Freddie Mac. Home owners should contact their lender to see if they’re eligible.
- Borrowers who are delinquent on their mortgage do not qualify.
- The first mortgage may not exceed 105 percent of the current market value of the property.
- NOTE: Loan-To-Value, LTV, was increased to 125% July 1, 2009
- To be eligible for the modification option, borrowers must live in their property and be able to pay the mortgage after the modification.
- The unpaid principal balance must be equal to or less than $729,750 for one-unit properties.
- The loan must have originated before Jan. 1, 2009.
- A borrower must have a payment (including taxes, insurance and homeowners association dues) that is more than 31 percent of the borrower’s gross monthly income.
- Consumers can find more information about these programs at FinancialStability.gov.
Eligibility Test to see if you qualify for Home Affordable Program Refinancing.
Eligibility Test to see if you qualify for Home Affordable Program Modification.
Related post on this Blog about What to do when Loan Servicer is Not following the Home Affordable Program Guidelines - June, 2009
Related post on this Blog about Making Home Affordable: Refinancing and Modification – March, 2009
SOURCE: USA Today
