According to RealtyTrac, over 300,000 properties are filing for foreclosure every month. To help slowdown the overwhelming flood of foreclosed homes on the market, the federal government implemented the $75 billion plan for the Making Home Affordable program. This program was developed to basically help keep Americans in their home.
The Making Home Affordable program was designed to help borrowers who are having a difficult time keeping their loan payments current or borrowers that are already delinquent on their monthly mortgage payments. Borrowers do not even have to have their home loan through the mortgage giants Fannie Mae or Freddie Mac for this program to help them.
To be eligible for a loan modification through the Making Home Affordable program you must meet certain requirements. You are required to be the owner-occupant of the home to be considered for a loan modification. The amount owed towards the principal balance must be less than or equal to $729,750 on a single-unit property. Your monthly mortgage payment amount (including taxes, insurance and home owner’s association fees) must be larger than 31% of your monthly pretax income. You have to have a first lien mortgage dated on or before January 1, 2009. You must also provide documentation providing that you can no longer afford your monthly mortgage loan payment due to financial hardship. Borrowers do not have to be behind on their mortgage payment to be eligible for a loan modification through the Making Home Affordable program. If borrowers are having difficulty keeping up with their current mortgage payments, they could be eligible for a loan modification. Usually borrowers will be eligible is they are struggling and can prove that their mortgage payment is about to increase, possibly due to an interest-only home loan.
To seek help with a loan modification through the program, find a HUD-approved counseling office. The services are free and the organizations offer borrowers debt management help and credit counseling. You can obtain a list of HUD-approved counselors and locations here
Quite a sigh of relief for those who are homeless after the recession has struck. The amounting debt has even made it worse for them. may be at least the new year would prove to be good.