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MAKING HOME AFFORDABLE/AMERICAN RECOVERY AND REINVESTMENT ACT (ARRA)
The following is summarized from the U.S. Dept. of the Treasury’s, “Making Home Affordable” guidelines, http://www.financialstability.gov/makinghomeaffordable/
The American Recovery and Reinvestment Act (ARRA), “Making Home Affordable” mortgage assistance program will assist current or at-risk homeowners to refinance or modify loans to more affordable terms.
The two types of mortgage assistance programs are:
1. THE HOME AFFORDABLE REFINANCE:
Homeowners who may be eligible are those who are current on their mortgages, but are not able to refinance to take advantage of today’s lower interest rates due to a decrease in the value of their home.
Details of the program include:
- Loans must have originated on or before January 1, 2009
- Mortgages that are “Current” means no more than 30 days late on your mortgage payment in the last 12 months.
- Property must be owner occupied; no investor-owned, vacant or condemned properties.
- The loans must be held or secured with Fannie Mae or Freddie Mac. For more information:
These Government Sponsored Enterprises (GSE) lenders and servicers already have borrower’s information on file, so documentation requirements are not likely to be burdensome and in some cases, an appraisal will not be necessary. This program expires in June 2010.
Information that you will need to provide:
- Information about the monthly gross (before tax) income of your household
- Your most recent tax return
- Information about your assets
- Information about any second mortgage on the house
- Account balances and minimum monthly payments due on credit cards
- Account balances and monthly payments on all other debt such as student and car loans.
2. THE HOME AFFORDABLE MODIFICATION:
Homeowners who may be eligible are those who are struggling to make their monthly mortgage payments either because their interest rate has increased, or they have less income, or they are experiencing a hardship that has decreased their income. This program expires on Dec. 31, 2012.
Details of the program include:
- Loans must have originated on or before January 1, 2009
- Property must be owner occupied; no investor-owned, vacant or condemned properties.
- This program will work in tandem with HUD’s “Hope for Homeowners” program, http://portal.hud.gov/portal/page?_pageid=73,1&_dad=portal&_schema=PORTAL
• If you have already missed one or more mortgage payments, contact your mortgage lender or a HUD-approved housing Counselor, www.hopenow.com (888-995-HOPE)
Information that you will need to provide:
- Information about the monthly gross (before tax) income of your household
- Your most recent tax return
- Information about your assets
- Information about any second mortgage on the house
- Account balances and minimum monthly payments due on credit cards
- Account balances and monthly payments on all other debt such as student and car loans.
- A letter describing the circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.)
BEWARE OF FORECLOSURE RESCUE SCAMS:
- No fee will be associated with acquiring information about Making Home Affordable from a lender or HUD Housing Counselor.
- Beware of persons or organizations that ask for a fee for supplying housing counseling on a homeowner’s delinquent loan.
- Beware of scams that say they can “save” your home if you sign over the deed to your house.
- Never make mortgage payments to anyone other than your mortgage lender.
For more information: http://www.financialstability.gov/makinghomeaffordable/
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SOURCE:
U.S. Treasury Department: www.financialstability.gov/makinghomeaffordable
Fannie Mae: www.fanniemae.com/homeaffordable
Freddie Mac: www.freddiemac.com/avoidforeclosure
HOPE NOW: http://www.hopenow.com
PREPARED BY: 211/tb
CONTENT LAST REVIEWED: March2009
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