Home Affordable Plan: Arizona Loan Modification Questions
Now that the Home Affordable Plan details have been released, many people have questions about their particular situation. For those people that I speak with about Arizona loan modification options, here are a few of the most common questions and answers:
Can Making Home Affordable help me if my loan is not owned or securitized by Fannie Mae or Freddie Mac?
Yes. Making Home Affordable offers help to borrowers who are already behind on their mortgage payments or who are struggling to keep their loans current. By providing mortgage servicers with financial incentives to modify existing first mortgages, the Treasury hopes to help as many as 3 to 4 million homeowners avoid foreclosure regardless of who owns or services the mortgage.
How do I know if I qualify for a Home Affordable Modification?
To apply for a Home Affordable Modification, you must:
- be an owner-occupant in a one to four unit property, and have
- an unpaid principal balance that is equal to or less than $729,750 (for one unit properties and higher for two to four unit properties (consult your servicer),
- a loan that was originated before January 1, 2009,
- a mortgage payment (including taxes, insurance, and home owners association dues) that is more than 31% of your gross (pre-tax)monthly income, and
- have a mortgage payment that is no longer affordable, perhaps because of a significant change in income or expenses.
If you answered YES to all of these questions, you are eligible to apply for a Home Affordable Modification. Only your servicer will be able to tell you if you qualify.
Do I need to be behind on my mortgage payments to be eligible for a Home Affordable Modification?
No. Responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they are at risk of imminent default, for example, because they have had or will soon have a significant increase in their mortgage payment that they cannot afford.
If you have had or anticipate a significant increase in your mortgage payment or have had a significant reduction in income, contact your servicer. If you meet the minimum eligibility criteria for a Home Affordable Modification, your servicer is required to evaluate your loan to see if you are at risk of imminent default.
More information about the Home Affordable plan can be found at http://www.financialstability.gov/
Do you think that you are a possible candidate for an Arizona loan modification through the Home Affordable plan? Be sure to contact your Arizona Loan Officer today!
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Comments
@Brian,
Thanks for stopping by!
The official site for more information on this program can be found here:
http://www.financialstability.gov/
Justin
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Based on the Fact Sheet provided by the White House, it originally appeard this program was for FannieMae, full doc loans only that were not more than 5% updside down. Is this the same program, or a different or amended one?