The Making Home Affordable program takes effect as of March 4, 2009. Homeowners can now start taking advantage of the new $75-billion foreclosure prevention program. It’s expected to help as many as 9-million homeowners.
Under the guidelines released loans can be adjusted immediately. The plan will be in effect until the end of 2012. Keep in mind that mortgages can only be modified once, so make sure you get it right the first time.
The Making Home Affordable program has two major parts. The first is to modify loans for borrowers who are at risk of default or already behind in their payments. The goal is to make monthly payments equal to no more that 31-percent of a homeowner’s monthly gross income. But to qualify: loans must have originated on or before January 1st of this year, they must be for a primary home and owner lives in, and the unpaid principal can amount to no more the $729,500.
There are financial incentives to participate. For instance, companies can receive $1,000 for certain loan modifications and both consumers and companies can receive $1,000 for each year a borrower then successfully stays in the program.
The second part of the foreclosure prevention package allows for refinancing for homeowners who’ve kept current on their payments but are underwater – meaning they owe more then the home’s market value.
Normally these folks have so little equity in their homes they haven’t been able to refinance, but under this program, homeowners who mortgages are owned or financed by Fannie Mae and Freddie Mac would have until June 2010 to refinance into new low interest rates.
But homeowners whose mortgages are underwater by more then 5-percent are out of luck. Also you cannot be unemployed; you must have sufficient income to make the monthly payments. And again, jumbo loans of $729,750 or more, don’t qualify for this part of the program either.
For more information on this program, contact the Barb Silcox Team of Keller Williams Real Estate. Directly at 215-738-6606 or 215-757-6100 x 176. You can also email us at Bud@Silcoxteam.com. Visit our website www.OurDreamHomes.net. Check out our other blogs at
About Me
- The Barb Silcox Team
- I am a full-time Realtors and Top Producer in the areas I serve. I do millions of dollars in transactions every year. I have the experience, knowledge, and dedication to serve your needs better than anyone else. I have extensive experience in Residential, Multifamily Investment, New Construction, and "Fixer-Upper" type properties. I work with everyone from First-Time Buyers to the experienced investor. I am licensed in PA & NJ.
