On the same day Congress pass the Economic Recovery Plan in February Treasury Secretary Timothy Geithner introduced the
Financial Stability Plan. Included in this plan is the Making Home Affordable Program in an effort to stabilize the housing market and help 7 to 9 million Americans reduce their mortgage payments to more affordable levels.
There are two components to this program, one of which may benefit you. The first is the Home Affordable Refinance Program which will provide up to 4 or 5 million homeowners that already have loans owned or guaranteed by Fannie Mae or Freddie Mac (about 90% of the home loans out there) an opportunity to refinance into more affordable monthly payments. This program is for borrowers that are current on their payments but are having difficulty refinancing to a lower interest rate because their property value has decreased. To complete a short questionnaire and find out if you may be eligible for this click here.
The second is the Affordable Modification Program which commits $75 billion to help up to 3 to 4 million Americans stay in their homes by preventing avoidable foreclosure. This program is for those homeowners that are struggling to make their payments, or may have even missed a payment or two, but could make their payments if the amount was reduced. To complete a short questionnaire and find out if you may be eligible for this click here.
Unfortunately there are unscrupulous companies out there charging borrowers for the assistance I’m talking about here. There is NO REASON to pay anyone a dime for help with these programs. Go to the Consumer website established by the government at www.MakingHomeAffordable.gov for complete information.