President Obama new loan modification plan - Making Home Affordable

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

20% of homeowners are upsidedown

One in five U.S. mortgage borrowers are underwater: Financial News - Yahoo! Finance

Reuters
One in five U.S. mortgage borrowers are underwater
Wednesday March 4, 8:55 am ET

By Jonathan Stempel

NEW YORK (Reuters) - One in five U.S. homeowners with mortgages owe more to their lenders than their properties are worth, and the rate will increase as housing values drop in states that have so far avoided the worst of the crisis, a new study shows.

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About 8.31 million properties had negative equity at the end of 2008, up 9 percent from 7.63 million at the end of September, according to the study, released Wednesday by First American CoreLogic. The percentage of "underwater" borrowers rose to 20 percent from 18 percent.

Another 2.16 million properties could go underwater if home prices fall another 5 percent, the study shows.

First American said the value of residential properties fell to $19.1 trillion at year-end from $21.5 trillion a year earlier, with half the decline in California. Forty-three U.S. states and Washington, D.C., were included in the study.