Obama's Making Home Affordable
Home Affordable Modifications
1. Loan modification can begin immediately
2. Owner occupant in 1-4 unit property, uppaid principle balance equal to $729,750. (for one unit)
3. Loan orginated before 2009
4. Have a mortgage payment that is above a 31% debt to income ratio. (debts are specifically defined to include - mortgage/loan payments, taxes, homeowner fees and insurance)
5. A change in income or expenses which make the old payment no longer affordable.
6. Borrowers can be CURRENT. A borrower does need to be at risk of imminent default and will be screened.
There is a trial modification period which borrowers must complete.
There is the possiblity for principle reduction.
There is also the possiblity of a pay off of $1000 to the junior loan.
For more information on the new home affordable loan modification plan
for more information on president obama's new loan modification plan