New Making Home Affordable Plan
Posted by perdewhomes on March 9, 2009
Here is some information released by California Association of Realtors. Note the advice about foreclosure rescue scams.
Home Refinance and Loan Modification Plan
Presented by the California Association of Realtors
On March 4, 2009, the Obama Administration released detailed guidelines for homeowners to help them determine if they qualify for the Administration’s new Making Home Affordable plan. This is a follow up to the Administration’s announcement on February 18 outlining their plan to stem the current tide of foreclosures and stabilize the nation’s housing markets.
The plan has two primary goals:
1.To help homeowners in existing Fannie Mae or Freddie Mac loans that are current on their mortgage payments to refinance and take advantage of today’s lower interest rates. Many of these homeowners are unable to refinance because of lost appreciation in their homes due to the continuing decline in home prices. These homeowners still have equity in their home, just not the necessary 20% to get a refinance. Under the Administration’s plan, Fannie and Freddie will be allowed to refinance qualified homeowners up to a 105 percent loan-to-value of the current value of the home.
2. To help homeowners who are at risk of foreclosure. The Administration is offering loan servicers and investors government assistance to help offset the cost of modifying qualified homeowners into affordable mortgages that will allow them to keep their homes. This may be done by reducing the mortgage interest rate, extending the term of the loan, principal forbearance, and/or principal cram down. This program is voluntary and the servicers must agree to contracts with the Treasury to participate.
In addition, the Government warns homeowners to beware of foreclosure rescue scams:
- There should never be a fee charged for information or assistance regarding the Making Home Affordable Program.
- Beware of anyone who says they can “save” your home if you sign or transfer over the deed to your home. Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
- Never make your mortgage payment to anyone other than your mortgage company without their approval.
Thanks,
CAROL PERDEW
Prudential California Realty
(209) 239-7979
www.CentralValleyHomes.com
David Camargo said
Under the new Obama Foreclosure & Housing Reform Plan, change will occur rather slowly because lenders must understand the new subsidies and incentives offered to lenders to modify loans. It could be months before lenders implemented the modification program, since they would have to train representatives and update internal procedures. While this training is going on numerous borrowers will be calling to see if their loans can be modified overwheliming the system even further. Furthermore it is estimated that only 17% of home owners in need will be helped by the plan. Consulting a legitimate and professional loan modification company, like Friendly Financial Services, provides assistance to a community in need by working diligently and effectively to modify their client’s loans. Every single case is treated as an urgent matter; the staff truly develops personal relationships with their clients throughout the modification process. Unfortunately, most companies entering into this field do not have the experience and knowledge needed to modify these files successfully. Modifications are very different than standard refinances and a lot more cost effective. We are an accredited business holding an “A” rating with the better business bureau and have a 98% success rate with our attorney, Robert V. Rossenwasser. Friendly Financial Services separates from the competition with a staff comprised of underwriters and processors who worked for lenders and have an insider understanding of what banks want to see in order to approve modifications. 786.629.6823