Wednesday, March 4, 2009

New Options Available for Homeowners

The details of the "Making Home Affordable" initiative were announced today from the Obama Administration that allows FannieMae and FreddieMac the ability to help homeowners that have been stuck in a stalemate with the current housing market. To be eligible for either the Home Affordable Refinance or the Home Affordable Modification your loans must currently be held by either agency and must be your primary residence. Each of the agency websites have different information and resources so I have linked them above but for the golden nuggets on eligibility click here. The refinance requires that you have not missed payments in the last 12 months, allows up to 105% loan to value, and is in effect through June 2010. The modification is available to those whose loans were originated prior to January 1 2009, that are currently in a hardship or have adjusting payments that will increase expenses, and whose loan amount is less than $729,750. FreddieMac has announced that all loans currently in foreclosure that qualify for the refinance or modification are suspended so that homeowners can seek this help. FannieMae servicers are directed not to proceed with pending foreclosures until the borrower has been evaluated for either program. This looks to be very tangible for all lenders but hang in there we all have a sharp learning curve. I still am trying to understand how the Mortgage Insurance will fall into place and also the protocol when a second mortgage is involved. I know of a few clients I will now be able to help that previously had been SOL. I want to stress NEVER pay for foreclosure counseling services, this is provided free with HUD approved counselors. Modifications can be done direct with your loan servicer as lenders now have an incentive program in place to help you.


Disclaimer: Freddie Mac and Fannie Mae have adopted changes to the Home Affordable Refinance program (HARP) and you may be eligible to take advantages of these changes.  
If your mortgage is owned or guaranteed by either Freddie Mac or Fannie Mae, you may be eligible to refinance your mortgage under the enhanced and expanded provisions of HARP.
You can determine whether your mortgage is owned by either Freddie Mac or Fannie Mae by checking the following websites: