Every day I meet with people who may not WANT to sell their home, but have decided they MUST sell to avoid foreclosure. My heart breaks for these folks, because most of the time I can’t help them. Either they owe too much on their home to price it low enough to sell in this market, or they don’t have enough equity in their home to refinance the loan.
Thankfully, as days go by, there are more and more options available to these struggling families. We can consider a short sale, we can rent the property to tenants, and now it’s becoming easier to talk to the bank about loan modification.
I won’t pretend to be an expert in any area of real estate other than buying and selling property, but I have a team of people I work with who definitely are. Lately news changes every day on who’s eligible for what and when and why and how. I rely on my team to keep me informed, and in turn I will do my best to pass the info on to you.
First, some mortgage terms:
Refinance: Many homeowners pay their mortgages on time but cannot take out a new loan on the house with today’s lower mortgage rates because of a decrease in the value of their home. A Home Affordable Refinance (see #2 below) will help borrowers whose loans are held by Fannie Mae or Freddie Mac refinance into a more affordable mortgage.
Modification: Many homeowners are struggling to make their monthly mortgage payments either because their interest rate has increased or they have less income. Changing the terms of their loan, or loan modification, through Making Homes Affordable (see #2 below) may provide them with mortgage payments they can afford.
What are the mortgage loan modification and refinancing programs announced by the White House this week?
We are gathering information as it becomes available. Here is a link to what was published by CNN:
http://money.cnn.com/2009/03/04/news/economy/guidelines/index.htm?postversion=2009030409
Who is eligible for a lower rate if they are not behind on payments?
Use the self-assessment tool, http://www.financialstability.gov/makinghomeaffordable/refinance_eligibility.html, to see if you are among the 7 to 9 million homeowners who can benefit from Making Homes Affordable. Based on your results, we will provide suggestions about what you can do next.
I spoke with my mortgage lender only to learn that they do not have anything to offer me right now. My house payment is 50% of my income. Is there another neutral organization that can assist you with getting the loan modification that is promised in Obama’s Stimulus package?
Wanda,
Thanks for your question. There are local non-profit agencies that can help you through the red tape and negotiate with your bank for you. Please e-mail me with more information about your situation so I can give you specific details. Do you live in the Charleston area? What kind of loan do you have? How long have you owned your home? Have you experienced a loss in income? Has your interest rate increased? Are you behind in your payments? Answers to these questions will help me help you. You can use the contact form on this site to send a private e-mail message.
Stephanie
need to know if I can get help from the home stimulus package had a major change in income and its getting harder to make it home is 645.50 a month
Matt,
Thank you for your question. I’m happy to discuss your situation with you by private message or phone. Each case is different, so it’s best to look at yours one-on-one. Please call me at 843.574.3193 or send an e-mail to me using the contact form.
Stephanie
Hi Stephanie,
My house payment is over 50% of my income. I was recently told by my bank that I didn’t qualify for the Making Homes Affordable program. I am current on my mortgage and my income has decreased over the past two years. I have borrowed money from my profit sharing to pay down some debt and stay current on my mortgage. How do I get through this process if I have an inflated income tax return? I really struggle each month and don’t want to lose my home.
Patricia,
It sounds like you need to sell your house or restructure your loan. If you would prefer to keep your house, try getting help with your loan through one of the certified HUD counseling agencies: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm. I’m happy to discuss your situation in more detail by phone or e-mail, 843-870-0890 or stephanie@carolinaone.com.
Good luck!
Stephanie
Stephanie, my husband has been having some major heart issues since the middle of last year. We are struggling to get the bills paid. My husband is self-employed and has no income if he doesn’t work. Are there any stimulus packages that would help us out with refinancing since our credit has been hurt with doctor bills etc. We only have an equity loan on our home, but it is a little over $50,000.00. We have owned our home since 2000. Any ideas would be greatly appreciated. Thank you.
Rae,
I’m sorry you’re going through this. If you have equity in your home, refinancing may be an option. If not, we can discuss other options. Call me at 843-574-3193 and I’ll be happy to do what I can to help.
Stephanie
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