Two weeks ago, I gave an introduction to the Homeowner Affordability and Stability Plan, which is intended to help those that are struggling to pay their mortgage for any given number of reasons. The Homeowner Affordability and Stability Plan is a two-part federal program, which includes the Home Affordable Modification Program (which I wrote about last week) and the Home Affordable Refinance Program (which I’m writing about this week). Between both programs, an estimated 7-9 million families across America will be impacted by the program, with the hopes of stabilizing the housing market.
Home Affordable Refinance Program
If you are a homeowner who is current on your mortgage payments, but unable to refinance to a lower interest rate because your home value has decreased, you may still be able to refinance!
Could I Qualify for a “Making Home Affordable Refinance?”
Answer these questions:
- Is your home your primary residence?
- Do you have a Fannie Mae or Freddie Mac loan? If you don’t know contact:
- Fannie Mae,
- 1-800-7FANNIE (8am to 8pm EST).
- www.fanniemae.com/homeaffordable
- Freddie Mac
- 1-800-FREDDIE (8am to 8pm EST)
- www.freddiemac.com/avoidforeclosure/
- Fannie Mae,
- Are you current on your mortgage payments?
- “Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months.
- 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 answer “Yes” to all 4 of these questions, you will want to gather all of the information:
- Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
- Your most recent income tax return.
- Information about any second mortgage on the house.
- Account balances and minimum monthly payments due on all of your credit cards.
- Account balances and monthly payments on all your other debts such as student loans and car loans.
After you have this information, you should call your mortgage servicer or lender (the organization to whom you make your monthly mortgage payments) and ask about the Home Affordable Refinance application process. The number is on your monthly mortgage bill or coupon book.
With new programs comes implementing them. By no means will this process be simple and patience will be needed on your end. As the Government “rolls out” guidelines, banks will in turn need to make internal changes and adapt to those changes. Banks will need to create processes on how they are going to handle the calls, process and volume. Patience is key!
What if I am not eligible for a Home Affordable Refinance?
If you did not answer yes to all of the questions above, you may be eligible for a Home Affordable Modification, as I wrote about last week. To see if you may qualify for a Home Affordable Modification, visit the “modification self-assessment tool” at:
http://financialstability.gov/makinghomeaffordable/modification_eligibility.html
By:
Scott Gormley
Broker/Owner
Oak Valley Mortgage
Office: 530-361-6202
Cell: 530-592-8362
Email: Scott@OakValleyMortgage.com
Website: www.OakValleyMortgage.com
“You Find the Perfect Home, We’ll Find the Perfect Loan!”
