Making Home Affordable Program: The President's plan created to help millions of homeowners refinance or modify their mortgages.

In my quest to find help for homeowners who were caught up in the mess of toxic high-interest adjustable rate mortgages, I found some information regarding a new federal program introduced by President Obama in his plan to help at-risk homeowners struggling to hang on to their homes.

While this program may not help every homeowner in trouble, I found basic information via the FinancialStability.gov website containing eligibility requirements for two options available under the new Making Home Affordable program. On this web site, there is a mini quiz comprised of a few "yes" or "no" answers to determine whether or not a homeowner meets the eligibility requirements under the program. The program has two options available, refinancing or loan modification. From what I have read, to qualify for a refinance under this program, a homeowners' mortgage must currently be a Fannie Mae or Freddie Mac loan. Otherwise, a homeowner may qualify under the programs' loan modification option depending on whether they answer "yes" to all of the following questions:

1. Is your home your primary residence?

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

3. 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)?

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

According to information I found on the FinancialStability.gov website, "Servicers received the detailed program requirements on March 4, 2009 and it may take some time before they are fully operational. However, Treasury has encouraged servicers to immediately assist delinquent borrowers at the greatest risk of foreclosure."

Source Link: http://www.financialstability.gov/makinghomeaffordable/modification_yes.html

To find out whether a homeowner can qualify to participate in either of these programs, the following link will take you to the self-assessment tool to find out:

http://www.financialstability.gov/makinghomeaffordable/refinance_eligibility.html

If you are a homeowner in trouble, I encourage you to try the self-assessment tool to see if you are eligible to participate in this program. If you know of a homeowner who would find this information helpful, I encourage you to pass this along.

Avoiding Foreclosure: New Online Resource by Freddie Mac

Today, I found out about a new online resource center dedicated to the prevention of foreclosures presented by Freddie Mac. As I visited the homepage of this new resource center, I read about Freddie Mac's commitment to helping borrowers to avoid foreclosure and to keep them in their homes whenever possible. According to the website, the resource center provides a one-stop shop for those who interface with consumers - especially the Sellers, Servicers, and community-based organizations working in neighborhoods every day that are helping homeowners avoid foreclosure. Despite the recent troubles Freddie Mac has been facing, it is good to know that they are doing what they can to help homeowners stay in their homes.

The most notable thing I read was their announcement made on November 20, 2008 of their 6-week suspension of all foreclosure sales and scheduled evictions on occupied single family 1-4 unit residences with Freddie Mac-owned mortgages beginning November 26, 2008 through January 9, 2009. Here is a link to the new resource center presented by Freddie Mac:

Avoiding Foreclosure Online Resource Center

(photo: banks.com)