Making Home Affordable
U.S. Department of Treasury's program for Refinance and Modification
3.4.09-The Treasury announced today their program to help nearly 9 million Americans refinance or modify their home loan. Making Home Affordable is the latest effort by the U.S. Government to help prevent the continued rise in foreclosures. Two main points of the program are to help people who are facing foreclosure to modify their loan and the second is to allow homeowners who owe more the the house is worth refinance into a low fixed rate.
Low 30-Year Fixed Mortgage Rates Available
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The Making Home Affordable program has been in the works for many weeks as the Treasury department worked on the details. Many analyst believe this program will provide the most benefit for those with a California mortgage. As we know, California has been hit hardest by the downturn in real-estate and many homeowners are suffering. Either they are facing foreclosure or can not refinance their home or sell the their home because they owe more then the house is worth. Several government programs have been created (most recently the 300 billion dollar program established in the summer of 2008) to help but they have been unsuccesful.
Basic Guidelines for the Making Home Affordable program:
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Loans originated on or before January 1, 2009
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First-lien loans on primary residences with a balance up to $729,750.00
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All borrowers must fully document their income
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Owner occupancy will be verified to ensure status of primary residence
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1-800-550-5538
Per the Treasury: Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.
The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today's lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.
GSE lenders and servicers already have much of the borrower's information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.
The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.
With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments.
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