Real Estate Blog

Will president's housing rescue plan help you?

March 7th, 2009 12:37 AM by Sherry Lee

The Obama administration on Wednesday outlined key details of a $75 billion housing rescue plan expected to help as many as 9 million homeowners rework mortgages into more affordable monthly payments.

Loan modification

» Who is eligible: People who are behind in their payments or are at risk of default. Loans must have been made on or before Jan. 1, and modifications will be allowed only once. Borrowers must document income and have an affidavit of financial hardship.

» How many will be helped: Up to 4 million homeowners.

» How to do it: Call your mortgage servicer or lender (the company that sends your monthly bill) and ask about the Home Affordable Refinance application process. Be patient: Mortgage companies are likely to be flooded with calls.

Loan refinancing

» Who is eligible: Homeowners whose loans are held by Fannie Mae or Freddie Mac and have less than 20 percent equity in their homes. Homeowners must have a solid payment history on mortgages.

» How many will be helped: Up to 5 million homeowners.

» How to do it: Contact your loan servicer to find out whether the mortgage is held by Fannie or Freddie.

To learn more

» On the Web: Go to www.financialstability.gov to see whether you qualify for help. The Treasury Department has information at www.treas.gov.

Star and news service reports

Posted in:General
Posted by Sherry Lee on March 7th, 2009 12:37 AM

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