President Obama's Making Home Affordable Plan

Loan Modification and Refinance options

The Making Home Affordable plan has two components.  A refinance component and and  loan modification component.

The plans are voluntary but the government is offer the servicers and investors money to participate. Once the investor or servicers agrees to participate it seems

they will have to offer the modifications to eligible home owners. 


Home Affordable Modifications

1. Loan modification can begin immediately

2. Owner occupant in 1-4 unit property, uppaid principle balance equal to $729,750. (for one unit)

3. Loan orginated before 2009

4.   Have a mortgage payment that is above a 31% debt to income ratio.  (debts are specifically defined to include - mortgage/loan payments, taxes, homeowner fees and insurance)

5. A change in income or expenses which make the old payment no longer affordable. 

6. Borrowers can be CURRENT. A borrower does need to be at risk of imminent default and will be screened.

There is a trial modification period which borrowers must complete.

There is the possiblity for principle reduction.

There is also the possiblity of a pay off of $1000 to the junior loan.    



The new Making Home Affordable Refinance Plan

1. Conforming Loans owned or securitized by Freddie Mac or Fannie Mae.  Most loan types are available for modification including, prime, subprime and adjustable.
    We would expect other loans to modify in a similar manner. 

2. Refinance Program starts immediately

3. Owner occupied, sufficient income to support new payments, the first mortgage can not exceed 105% of the current market value of the property.

4. If two loans junior liens must agree to subordinate to new senior loan. 

5. Borrower must be current.

See if you Qualify for Negotiations First Name* Last Name* Email* Phone* Please List One Property at a time State of Subject Property* Zip Code of subject Property* Purchase Price* Amt of senior Loan approx* Amt of junior Loan approx* Amt of third Loan approx Do you live in property* yes no About when did you take out 1st Loan When did you take out 2nd When did you take out 3rd When did you purchase property Did you move in when purchased Which loans are at leaset 60 days past due 1st 2nd Both Have you suffered a loss in income* -- Please select --yes no Are you still earning income* -- Please select --yes no What type of Modification are you seeking 1-5 year payment reduction Permanent Payment Reduction Principle and Payment Reduction Monthly Gross Income* Monthly Net Income Monthly Debt payments (do include payments detailed above* Monthly Housing Payments - including Taxes, Insurance, Hoa's,* Monthly living expenses not detailed above Is your current first loan interest only* Yes No Is your current second loan interest Only* Yes No Question / Comments Enter the code:    Please wait...