Here are some highlight for what other people are writing about the new program.
Not 10 minutes after The U.S. Treasury’s official Home Affordable announcement March 4, 2009, the nation’s news sources were already printing misleading headlines and incomplete stories.
The ranged from sensational to mundane. Mostly, though, they were incomplete. Rest assured, my friends, you’re not getting a 2 percent rate on your mortgage.
Here’s the bullet points from today’s announcement:
* Loan modification guidelines for “at-risk” homeowners are defined
* Refinancing guidelines for “underwater”, on-time homeowners are not defined
I really don’t have an opinion on whether or not the plan will actually help the number of homeowners as claimed by the media (9 million) – because after all, what most people really want to know is “will the plan help me in my situation” as in… “what’s in it for me“?
And each situation is individual, so be sure to speak with as many people as you can about your options. Real Estate Agents, Loan Officers, Hope Now, Loan Modification Companies, Loan Modification Attorneys – speak with all of these people if you are having trouble making your mortgage payment.
And it is entirely probable that they will all tell you different information — and hopefully with the sum of the pieces, you will be able to paint the picture of what is best for you in your situation.
The Home Affordable Modification program does not involve a refinance (which is a new mortgage replacing the existing mortgage). With a loan modification, the terms of the existing mortgage are modified. You can read the borrower qualifications by clicking here. This applies to borrowers who are dealing with “financial hardship” and this is a “full document” transaction including providing income documentation and verification that the home is owner occupied. Families with high debt levels may be required to complete financal counceling through a HUD approved counselor.