Making Home Affordable Initiative in place
March 4, 2009
The $75 billion loan modification program, “Making Home Affordable” initiative is under way. This Obama administration program will allow many homeowners to refinance or modify their mortgages and provide them with mortgage payments they can afford.
Single-family mortgages on property worth more than $729,750 are excluded from loan modification. Only transaction costs may be included in the refinanced amount—getting cash out to pay other debts is not allowed.
To enroll in the program, borrowers may need to provide: their most recent tax return; two pay stubs; as well as information about assets, debts and a second mortgage. Other items such as an affidavit of financial hardship may also be needed.
Borrowers are encouraged to call their mortgage servicers or lenders for details. Servicer participation is voluntary; but since there are substantial governmental incentives, it is expected that most major servicers will participate.
Approximately seven to nine million homeowners will qualify for this initiative.
For more information, visit www.financialstability.gov.
Copyright 2009 Neighbors About Town
