Do I qualify for a mortgage refinance under the Obama Plan?

by Jay Fleischman, Esq.

April 16, 2009

In order to determine if you are eligible to refinance your home under the Obama Administration’s Home Affordability and Stability Plan, it’s a good idea to visit the Making Home Affordable website.

From there, you have the opportunity to check your eligibility for refinancing or mortgage modification.

What are the requirements for a mortgage refinance under the Making Home Affordable program?  First, click here.  You’ll be asked the following questions:

  • Are you the owner of a 1-4 unit home?
  • Is your mortgage loan owned or guaranteed by Fannie Mae or Freddie Mac?
  • Are you current on your mortgage payments – meaning that you haven’t been more than 30 days behind in the last 12 months?
  • Is your mortgage loan balance no more than 105% of the value of your home?

If you fit into these categories, your work is just beginning.  You then need to gather the following items:

CHECKLIST

  • Information about your mortgage, such as your monthly mortgage statement and
  • 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 or home equity line of credit 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.

And then you have to contact your mortgage servicer – the company to which you are making your payments.  Tell them you are asking for a mortgage modification under the Making Home Affordable – Refinance Plan.

The government says you should be patient.  We agree.  And if you want or need help, please avoid so-called “mortgage modification specialists.”  They are mostly rip-offs.  You can and should get help like this for free.  Click here to find HUD approved counsellors in your state.

If you are facing foreclosure in court, you need legal assistance and you need it right away.  In that case, please contact one of the attorneys here on Mortgage Law Network to assist you in court while you are pursuing mortgage modification options out of court.

Related Posts Plugin for WordPress, Blogger...
The following two tabs change content below.
Jay S. Fleischman is a bankruptcy lawyer with offices in Los Angeles and New York. He can often be found on Google+ and Twitter, where he shares information about consumer protection issues and personal finance.

Last modified: April 16, 2009