April 19, 2010
Obama Administration Announces New Plans to Help With Housing!
George B. Thompson
Contrary to what the news is reporting we are still not out of the woods with this economic crisis. People still need jobs and home owners are still struggling to keep their heads above water. Back in March, the Obama Administration announced new initiatives to aid homeowners. The program enhancement is aimed at supporting homeowners that are behind in their mortgages due to unemployment and borrowers who owe more on their house than it is worth.
Look below to see if you are eligible:
If you are unemployed or have a reduction in income you may qualify for a mortgage payment reduction:
The company servicing your mortgage will be required to offer at least three, and up to six, months of reduced payments.
During that time, you won’t have to pay more than 31 percent of your monthly income toward the mortgage.
You have to live in the home to qualify.
The mortgage balance has to be less than $729,750, with a monthly payment that represents more than 31 percent of the gross monthly income of all borrowers who signed your mortgage, before you subtract anything for taxes or deductions.
If one person in the household works and one is unemployed, you will not be eligible if the loan payment is under 31 percent of your current total household income.
Lastly, you need to prove that you are receiving unemployment benefits and ask for help within 90 days of any late payments.
Note: The lowered payments would revert to the regular amounts once you got a job, if you became employed before the three- to six-month period ended.
If you are underwater, you owe more than your home is worth, you can seek help from your mortgage company:
The company that controls your mortgage might reduce your principal. (something that wasn’t happening much before.) The government is offering additional incentives for companies to do so.
Your property will need to be worth at least 15 percent less than the value of your first mortgage for you to qualify. If your mortgage has already been modified to lower your interest and monthly payments, you may still be eligible.
To qualify, you need to live in your home, have a mortgage under $729,750 and have a mortgage payment more than 31 percent of your gross monthly income.
Any principal forgiveness will take place in three equal amounts over the course of three years but only if you make your mortgage payments on time.