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Making Home Affordable is part of the federal government’s comprehensive strategy to get the housing market back on track. Through the Making Home Affordable Program, up to 9 million American families may be eligible to refinance or modify their loans to a payment that is affordable now and into the future.
Visit www.makinghomeaffordable.gov for more information.
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Home Affordable Refinance
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Home Affordable Modification
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When Will Help Be Available?
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The Home Affordable Refinancing program is available today and expires on June 10, 2010.
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The Home Affordable Modification program is available today and expires on Dec. 31, 2012.
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Who is Eligible?
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You may be eligible if:
· You are the owner occupant of a one to four unit home,
· Your mortgage is owned or securitized by Fannie Mae or Freddie Mac
· You are current on your mortgage payments
· The amount you owe on your first mortgage is about the same or slightly less than the current value of your house, and
· You have income sufficient to support the new mortgage payments.
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To apply, you must:
· Be an owner-occupant in a one to four unit property,
· Owe $729,750 or less for one unit properties
· Have a loan that was originated on or before January 1, 2009,
· Have a mortgage payment that is more than 31% of your gross (pre-tax) monthly income, and
· Have a mortgage payment that is not affordable, perhaps because of an increase in your mortgage payment or a significant change in income or expenses.
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How Will the Program Help?
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The Home Affordable Refinance program is designed to help homeowners with solid repayment histories but who are unable to refinance due to falling home values get into a mortgage with payments that are affordable today and sustainable for the life of the loan.
Borrowers whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments.
Borrowers who are paying interest only, or who have a low introductory rate that will increase in the future, may not see their current payment go down if they refinance to a fixed rate and payment. These borrowers, however, could save a great deal over the life of the loan by avoiding future mortgage payment increases.
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The Home Affordable Modification program is designed to help financially struggling homeowners, including those who have fallen behind on payments, avoid foreclosure by modifying loans to a level that is affordable now and sustainable over the long term. The program provides incentives to modify loans, as well as clear and consistent modification guidelines.
After validating an eligible borrower’s monthly income and outstanding balance on his or her first mortgage, as servicer will take a series of steps to adjust the total monthly payment to 31% of the borrower’s monthly pre-tax income:
· First, reduce the interest rate to as low as 2% (for up to 5 years).
· Next, if necessary, extend loan term to 40 years.
· Finally, if necessary, defer a portion of the principal until the loan is paid off and waive interest on the deferred amount.
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How Can I Get Help or Learn More?
To learn more about the Making Home Affordable program, visit www.makinghomeaffordable.gov or contact your loan servicer.
If you or someone you know is facing foreclosure you should contact your loan servicer to discuss your situation as soon as possible, or you can contact a HUD-approved housing counselor by calling 1-888-995-HOPE. Here are some HUD-approved housing counselors in Macomb and Oakland County:
GreenPath
888-860-4167 (toll-free)
Offices in Roseville, Southfield, and Troy
Michigan State University
Extension Services
586-469-5180
Clinton Township
Christian Credit Counselors
800-557-1985 (toll-free)
Southfield
For Oakland County residents:
Oakland County Housing Counseling
888-350-0900 (toll-free)
Pontiac
If you need further assistance, please visit my constituent services web page or contact my District Office at (586) 498-7122 with any questions or concerns you may have.
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