Help for Responsible Homeowners Has Arrived

Loan modification programs - all of which, until now, have focused on those who are delinquent - have been talked about ad nauseam on discussion boards and in the comments sections of blogs all across the real estate “blogosphere.” Many have become so fed up that they’re ready to dismiss the entire country as one where accountability is dead. I’ve actually been one of them, but today I learned about a new program that, somehow, I had been unaware of.

It’s called “Making Home Affordable” and, if what the website notes is true, it’s a loan modification or loan refinancing solution ONLY for those who are NOT behind on their payments. This one, at long last, is for the responsible people who are scrapping by despite being laid off, having a serious change in their financial situation and even those who purchased their home responsibly but got “caught” in the inflated prices of the middle of the decade.

Answer “yes” to the questions below, and you just may be eligible for assistance:

Is your home your primary residence?

Is the amount you owe on your first mortgage equal to or less than $729,750?

Are you having trouble paying your mortgage?
For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?

Did you get your current mortgage before January 1, 2009?

Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) more than 31% of your current gross income?

So…there you have it. As of now, only the “servicer” of your loan can determine your true eligibility. As of April 4, 2009, however, those with loans that are owned or have been securitized with Fannie Mae can work with any Fannie-approved lender.