Who is Eligible to Refinance or Modify their Loan?

There is so much information going around about foreclosure alternatives available to homeowners who are facing foreclosure limbo.

The things homeowners hear may be conflicting or confusing by the time the information reaches them. Borrowers are asking more questions about exactly what lies in their future three or five years down the road.

Here are some simple questions you should ask yourself to determine if you may be eligible for either a refinanced mortgage or a loan modification under the Home Affordable Refinancing and Loan Modification Plan recently initiated by the Obama administration:

Are you eligible for a Home Affordable Refinance?

1. Are you the owner of a one- to four-unit home?
2. Do you have a loan owned or guaranteed by Fannie Mae or Freddie Mac?
(If you don’t know, ask your lender.)
3. Are you current on your mortgage payments?
(“Current” means that you’ve never been more than 30 days late on your mortgage payment in the last 12 months.)
4. Do you believe that the amount you owe on your first mortgage is about the same
or less than the current value of your house?

If you answered YES to ALL the questions above, then you are eligible for a Home Affordable Refinance. To find out if you are qualified, you’ll need to talk with your lender and submit necessary supporting financial documents..

Are you eligible for a Home Affordable Loan Modification?

1.. Is your home your primary residence?
2. Is the amount you owe on your first mortgage equal to or less than $729,750?
3. Are you having trouble paying your mortgage?
(For example, have you had a significant increase in your mortgage payment OR a reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses, like medical bills?)
4. Did you get your current mortgage before January 1, 2009?
5. Is your payment on your first mortgage (including principal, interest, taxes,
insurance and homeowner’s association dues, if applicable) more than 31% of
your current gross income?

If you answered YES to ALL these questions, then you are eligible for a Home Affordable Loan Modification. To find out for sure if you are qualified, you’ll need to talk with your lender and submit necessary supporting financial documents.

You may visit www.makinghomeaffordable.gov for more information. To find out if you should modify your loan or short-sell your home, please contact Maria Hass with Realty Executives at (480) 650-0075 for a FREE, NO OBLIGATION consultation.