The Obama released some of the details of the Making Home Affordable plan today with not many surprises. See the guideline summary pdf here.
The plan is split into two parts; the first is for refinances and the second, larger part, is for loan modifications. The refinance portion is dubbed The Home Affordable Refinance and it is the portion our group focuses on. Here are some of the basic qualification questions for The Home Affordable Refinance program:
1. Is your home your primary residence?
2. Do you have a Fannie Mae or Freddie Mac loan? If you don’t know contact:
* Fannie Mae, 1-800-7FANNIE (8am to 8pm EST). www.fanniemae.com/homeaffordable
* Freddie Mac, 1-800-FREDDIE (8am to 8pm EST). www.freddiemac.com/avoidforeclosure/
3. Are you current on your mortgage payments?
* “Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months.
4. Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house?
If you meet those four requirements a Making Home Affordable Refinance may work for you. If that is the case please contact us by filling in the contact form in the sidebar.
If you do not meet the above requirements then the second part of the plan, The Home Affordable Modification, might apply to you. In order to check on a Home Affordable Modification please contact your current lender or servicer directly.