Updates on Homeowner Affordability and Stability Plan: Do You Qualify?

Last week, the details for the Homeowner Affordability and Stability Plan were released to the public. Again, the criteria for qualification are as follows -

For homeowners who are CURRENT on their payments, but the value of the house is less than the mortgage:

• Your home must be your primary residence.
  
• You have a Fannie Mae or Freddie Mac loan. If you don’t know, contact 1-800-7FANNIE (www.fanniemae.com/homeaffordable) or 1-800-FREDDIE (www.freddiemac.com/avoidforeclosure).
  
• You current on your mortgage payments (“Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months).
  
• You believe that the amount you owe on your first mortgage is about the same or less than the current value of your house.
  

For homeowners who are AT RISK of foreclosure:

• Your home must be your primary residence.
  
• The amount you owe on your first mortgage equal to or less than $729,750.
  
• You having trouble paying your mortgage. For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills).
  
• You have a Fannie Mae or Freddie Mac loan. If you don’t know, contact 1-800-7FANNIE (www.fanniemae.com/homeaffordable) or 1-800-FREDDIE (www.freddiemac.com/avoidforeclosure).
  
• You received your current mortgage before January 1, 2009.
  

If you fall within the criteria above, you need to contact your mortgage servicer and ask to be considered for a Home Affordable Refinance (for CURRENT homeowners) or Home Affordable Modification (for AT RISK borrowers). Make sure you have gathered the following materials:

1. 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.

2. Your most recent income tax return.

3. Information about your assets.

4. Information about any second mortgage on the house.

5. Account balances and minimum monthly payments due on all of your credit cards.

6. Account balances and monthly payments on all your other debts such as student loans and car loans.

7. If you are behind on your payments, a letter describing the circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.).

Please be patient! Servicers received the detailed program requirements on March 4, 2009 and it may take some time before they are fully operational. However, Treasury has encouraged servicers to immediately assist delinquent borrowers at the greatest risk of foreclosure.

Information provided by www.financialstability.gov.