A Closer Look at the Making Home Affordable Modification Program

The Florida mortgage landscape may shift a bit here shortly as  Obama’s home affordable modification program, titled “Making Home Affordable,” sets to take hold on April 4, 2009.

The authors of the Making Home Affordable program legislation hope to provide help to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to ward off the destructive impact foreclosures are having on families, communities and the US economy.

How the Making  Home Affordable Program Will Work

The Home Affordable Refinance program will work on two fronts.  First, it 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 these homeowners 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.

The second area of focus for the Making Home Affordable program will be helping 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 recently announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications.

Note: 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.

No Documentation Overload This Time

If you’re thinking of applying for this program, take heart.  Your lender or mortgage servicer should already have much of your information on file, so you most likely won’t be overburdened with documentation requirements. In addition, you may – in some cases – be able to avoid paying for a new appraisal. This flexibility should make your refinance quicker and less costly for all parties concerned.

Take your time to figure out if you qualify, but do know that the Home Affordable Refinance program ends in June 2010.

Eligibility and Verification

• Loans originated on or before January 1, 2009.
• First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.
• All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.
• Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.
• Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.
• Modifications can start from now until December 31, 2012; loans can be modified only once under the program.

If you’re in trouble with your Florida mortgage and feel that you need immediate help or advice, please give me a call at 863-604-3019.  I have several ideas that should offer you some comfort, and my proven contacts in the real estate industry are waiting to help you and your family during what can be a very difficult time.

Related articles

• Treasury Loan-Modification Guidelines (blogs.wsj.com)
• Mortgage help: Do you qualify? (money.cnn.com)
• What is U.S. Treasury mortgage modification program? (ceoworld.biz)

Apply for a Florida  Mortgage Today

Kevin Sandridge The Florida Mortgage Pro Signature Home Funding 410 Laurel Cove Way Winter Haven, FL 33884

Mobile: 863-604-3019 Fax: 888-496-0265 Email: kevin.s@sigfunding.com http://www.floridahomeloanspecialist.com

I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!

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