Loan modifications are available for those facing foreclosures
The Homeowner Affordability and Stability Plan is a mortgage modification plan that is currently helping some homeowners lower their monthly mortgage payments. Although eligibility is determined by your mortgage lender based on your financial situation and other guidelines, below are some of the plan’s features:
The program is intended to help those who are current on their mortgage payments, but are unable to refinance because they owe more than their home’s current value.
- The program allows homeowners to modify their current loan into a 15 or 30 year fixed rate loan.
- The new first mortgage may not exceed 105% of the current market value of the home.
- The second mortgage holder must agree to remain in second position.
- You must occupy the home as your primary residence.
The biggest downside to this program is that you must have a Fannie Mae or Freddie Mac loan to qualify.
In most cases you will need the following to apply:
- An application packet from your lender.
- Last two paycheck stubs.
- Last two years' tax returns
- Proof of financial hardship
This program started on March 4, 2009. There is no telling how long funds will last, so borrowers are encouraged to apply early.
