Buck
03-05-2009, 08:14 AM
"People with unaffordable mortgages now have one set of rules, applicable nationwide, to determine whether they can get lower monthly payments.
Folks who can afford their mortgages but need help to refinance to lower rates don't get a lot of help.
The Obama administration's housing plan encourages lenders to modify the mortgages of homeowners who can't afford their monthly house payments because of hardship. The definition of hardship is loose and includes: lost income, increased expenses, payment shock from an adjustable-rate mortgage, and "other indications of being at risk of default."
http://www.bankrate.com/dls/news/mortgages/20090305-Obama-HASP-details-a1.asp
Qualified homeowners would keep their current loans, but the payments would be reduced to 31 percent of before-tax income. Most borrowers would see their payments rise after five years.
The aim of the Making Home Affordable program is to "prevent the destructive impact of foreclosures on families and communities," according to the Treasury Department.
Two weeks ago, the Obama administration announced the outlines of the foreclosure prevention program, which then was dubbed the Homeowner Affordability and Stability Plan. Now the name is shorter and the details are longer. The guidelines for the mortgage modification plan fill 17 pages and explain, step by step, who is eligible for modifications and how those monthly house payments are reduced to 31 percent of income.
Folks who can afford their mortgages but need help to refinance to lower rates don't get a lot of help.
The Obama administration's housing plan encourages lenders to modify the mortgages of homeowners who can't afford their monthly house payments because of hardship. The definition of hardship is loose and includes: lost income, increased expenses, payment shock from an adjustable-rate mortgage, and "other indications of being at risk of default."
http://www.bankrate.com/dls/news/mortgages/20090305-Obama-HASP-details-a1.asp
Qualified homeowners would keep their current loans, but the payments would be reduced to 31 percent of before-tax income. Most borrowers would see their payments rise after five years.
The aim of the Making Home Affordable program is to "prevent the destructive impact of foreclosures on families and communities," according to the Treasury Department.
Two weeks ago, the Obama administration announced the outlines of the foreclosure prevention program, which then was dubbed the Homeowner Affordability and Stability Plan. Now the name is shorter and the details are longer. The guidelines for the mortgage modification plan fill 17 pages and explain, step by step, who is eligible for modifications and how those monthly house payments are reduced to 31 percent of income.