Finally Some Good News - Homeowner Affordability/Stability Plan

Finally some good news for homeowners. Under President Obama's Homeowner Affordability and Stability plan many American households may no longer be trapped in their current mortgage.

The President's plan features two options:

Option 1:
Homeowners who are current on their mortgage payments but may be trapped in their current mortgage because of a lack of equity due to falling home prices may now have the ability to refinance their home even if they have little to no equity. This is true even if you have an existing second mortgage.

Option 2:
The other option is for homeowners who are past due or are in danger of becoming past due (yes, there is a test and you do have to prove you are in danger of becoming past due). These homeowners may be eligible to have their existing home modified to assist them in preserving their homeownership. This program is not for those who are making payments on time and have the ability to repay the loan. Only borrowers with a true legitimate bonafide hardship will be eligible for a modification (yes, you must prove a bonafide hardship).

These programs are only available to homeowners who have a first mortgage that is owned by Fannie Mae or Freddie Mac. The majority of home mortgages in the U.S are owned by Fannie or Freddie. The program does NOT apply to those who have Sub Prime, FHA/VA or other programs. However, it is expected that most Government programs (FHA/VA/Rural Housing) will make similar changes as well.

So the question is who qualifies and what are the details? The truth is the options and guidelines available to you depend on the investor for your mortgage (Freddie, Fannie or other) and a number of other factors. The truth is both Freddie and Fannie have slightly different guidelines between them.

I will be posting a new Q&A audio broadcast within the next couple of days. Please check back soon for additional information as the details of the program were just released on 3/4/09 and it will not be available for new loans to close until 4/1/09. Because the program was just released there are still questions on some of the guidelines. We will be posting a detailed audio cast within the next couple of days that will cover the most common questions.

My practice is able to help you determine your options. However, please be patient as this new program has generated substantial interest and our ability to respond to every inquiry quickly is slightly impaired.

Might I ad that now is not the time to trust your mortgage to an amateur. Truth be told most lenders are not familiar or competent to handle these new transactions. This will create frustration and lost opportunity for you.

With over 18 years experience, I have been recognized as an expert in my field and have been featured in and written for various trade magazines. At the end of the day, we have the expertise to insure you have the best options available to preserve your home and help insure you save money.