The Obama Administration’s Making Home Affordable program will offer assistance to as many as 7 to 9 million homeowners making a good-faith effort to make their mortgage payments, while attempting to prevent the destructive impact of the housing crisis on families and communities.
It will not provide money to speculators, and it will target support to the working homeowners who have made every possible effort to stay current on their mortgage payments.
Just as the American Recovery and Reinvestment Act works to save or create several million new jobs and the Financial Stability Plan works to get credit flowing, the Making Home Affordable program will support a recovery in the housing market and ensure that these workers can continue paying off their mortgages.
By supporting low mortgage rates by strengthening confidence in Fannie Mae and Freddie Mac, providing up to 4 to 5 million homeowners with new access to refinancing and creating a comprehensive stability initiative to offer reduced monthly payments for up to 3 to 4 million at-risk homeowners, this plan – which draws off the best ideas developed within the Administration, as well as from Congressional housing leaders and Federal Deposit Insurance Corporation Chair Sheila Bair – brings together the government, lenders, loan servicers, investors and borrowers to share responsibility towards ensuring working Americans can afford to stay in their homes.
Making Home Affordable
1. Home Affordable Refinance Program for Responsible Homeowners Suffering From Falling Home Prices
2. A Comprehensive $75 Billion Home Affordable Modification Program
- A Loan Modification Plan To Reach up to 3 to 4 Million Homeowners
- Shared Effort with Lenders to Reduce Mortgage Payments
- Incentives to Servicers and Borrowers
- Clear and Consistent Guidelines for Loan Modifications
- Required Participation By Financial Stability Plan Participants
- Modifications of Home Mortgages During Bankruptcy
- Strengthen Hope for Homeowners and Other FHA Loan Programs
- Support Local Communities and Help Displaced Renters
- Support Low Mortgage Rates by Strengthening Confidence in Fannie Mae and Freddie Mac
Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.
The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.
GSE lenders and servicers already have much of the borrower’s information on file, so documentation requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders. The Home Affordable Refinance program ends in June 2010.
The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments. Working with the banking and credit union regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury Department today announced program guidelines that are expected to become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with an expanded and improved Hope for Homeowners program.
With the information now available, servicers can begin immediately to modify eligible mortgages under the Modification program so that at-risk borrowers can better afford their payments. The detailed guidelines (separate document) provide information on the following:
Eligibility and Verification
- Loans originated on or before January 1, 2009.
- First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.
- All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.
- Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.
- Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.
- Modifications can start from now until December 31, 2012; loans can be modified only once under the program.
Loan Modification Terms and Procedures
- Participating servicers are required to service all eligible loans under the rules of the program unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain waivers of limits on participation.
- Participating loan servicers will be required to use a net present value (NPV) test on each loan that is at risk of imminent default or at least 60 days delinquent. The NPV test will compare the net present value of cash flows with modification and without modification. If the test is positive – meaning that the net present value of expected cash flow is greater in the modification scenario – the servicer must modify absent fraud or a contract prohibition.
- Parameters of the NPV test are spelled out in the guidelines, including acceptable discount rates, property valuation methodologies, home price appreciation assumptions, foreclosure costs and timelines, and borrower cure and redefault rate assumptions.
- Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no more than 31% of gross monthly income (DTI).
- The modification sequence requires first reducing the interest rate (subject to a rate floor of 2%), then if necessary extending the term or amortization of the loan up to a maximum of 40 years, and then if necessary forbearing principal. Principal forgiveness or a Hope for homeowners refinancing are acceptable alternatives.
- The monthly payment includes principal, interest, taxes, insurance, flood insurance, homeowner’s association and/or condominium fees. Monthly income includes wages, salary, overtime, fees, commissions, tips, social security, pensions, and all other income.
- Servicers must enter into the program agreements with Treasury’s financial agent on or before December 31, 2009.
- Payments to Servicers, Lenders, and Responsible Borrowers
- The program will share with the lender/investor the cost of reductions in monthly payments from 38% DTI to 31% DTI.
- Servicers that modify loans according to the guidelines will receive an up-front fee of $1,000 for each modification, plus “pay for success” fees on still-performing loans of $1,000 per year.
- Homeowners who make their payments on time are eligible for up to $1,000 of principal reduction payments each year for up to five years.
- The program will provide one-time bonus incentive payments of $1,500 to lender/investors and $500 to servicers for modifications made while a borrower is still current on mortgage payments.
- The program will include incentives for extinguishing second liens on loans modified under this program.
- No payments will be made under the program to the lender/investor, servicer, or borrower unless and until the servicer has first entered into the program agreements with Treasury’s financial agent.
- Similar incentives will be paid for Hope for Homeowner refinances.
Transparency and Accountability
- Measures to prevent and detect fraud, such as documentation and audit requirements, will be central to the program.
- Servicers will be required to collect, maintain and transmit records for verification and compliance review, including borrower eligibility, underwriting, incentive payments, property verification, and other documentation.
- Freddie Mac will audit compliance.
Sources:
From the Office Of Financial Stability
US Treasury Press Release Guidelines Summary
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Very confused…
To qualify for modification, you must provide an affidavid of financial hardship. One of those hardships can be significant loss of income. I recently lost my job and my only income at the present time is unemployment insurance. How does the program work in my scenario? Will my loan be modified to 2%, extended to 40 years and principal forbeared to get my payment down to 31% of my unemployment income (which would reduce my payment from $3000/mo to about $300/mo)? To me, this seems obsurd; how is this situation handled?
Thanks in advance for any insights!
Good Afternoon,
I would like to know,If I purchase a brand new home in Sept.2008,and I’ve been current on all my mortgage payment, but I’m struggling to stay above water am I eligible for a loan modfication.
Thanks
This program is not very exciting for most Californian’s. These banks are killing us over here. Most people who bought in the last 8 years are like 40% upside down. No refi fo them. The lost jobs and failing small business are so prevelent that the modifications needed also need massive debt forgivness. I appreciate the effort but it also seams that we could do better with a trillion dollars to spend. I am hard pressed to find someone I can help modify with these guidlines and I have over 1000 clients. They all want help but few will get any. The real estate community out here has poo pood the whole program. I hope this is not a giant waste of money
Need help trying to save my home, I am a disabaled father of two and my wife is a full time student.
I live in CA, and behind my payments for about 8 months now. My bank isn’t working things out with me. Under this prog., banks still aren’t forced to comply. They have a power can still impose other programs beneficial to them and not the brrowers. Gvrnmt. needs to pass a law to STOP the foreclosures choice by the banks without any pre-condiction first, then look into each borrower’s case.
I would like to know if I qualify for the loan modification. Do I contact my home loan company or is there somewhere else I need to contact.
Thanks,
What is going to happen for someone like myself who has contacted the bank and they keep denying a modification, or when banks are not justyfing and willing to make modifications. I need to say that Countrywide is very difficult and are not willing to accept negotiations?
Any suggestion lost in the wilderness Kissimme, Florida.
I would like to find out if this program will be able to help me I am 5 months late on my mortage . I was hurt and had surgery I was told that I would be out for 4 to 6 weeks but. I was out for 5 months without a paycheck . I had not been on my job for one year. I am a widow so the only money I had coming in was my widows pension that would keep food on the table and my utilities paid. I was not able to receive any other income. My loan company has rasied my mortage $837.00 over my regular mortage and I am having sleepless nights trying to pay this. Can someone contact me to help I don’t want to loose my home.
During the last interest rate adjustment my mortgage jumped significantly with added escrow payment.I was able to get a loan modification four months ago which brought my pymt back down to where I was originally which was a strain for me. Will Obamas program help me despite my recent modification
I’ve been diabaled for 9 yrs I’ve been keeping up with my mortgage payments however due to a kidney transplant and the cost of medicine I’m finding it harder every month to stay current. I’ve been in my home for 15 yrs not in forclosure yet.Do I qualify for a lower rate
My house is on a short-sale status? Then I read this program on loan modifications. I’m interested in this new program which will help me a lot in making current my loan payment. Am I still eligible to switch to this new loan modification program even though I’m on a short-sale?
i beeen in my house for almost 3 years. i now am struggling to keep my payments current. i have a 80/ 20 loan. do i qualify to combine the two mortgages and still get a cheaper interest rate and pmt. how do i knw if my bank is participating in the modification program.
I was laid off and have been trying to get a loan modification from WAMU since the end of December ‘08. I sent the paperwork by certified mail and keep on getting the run around, meanwhile they are hitting us with late payments and extra interest payments. How long does this take?? We are not the deadbeats who couldnt afford their house as we put down $100K and are now facing problems. It doesn’t look like this program is helping.
My wife is receiving unemployment income, and she has a loan which she cannot pay. She must go bankrupt, but even after that, she can’t afford the mortgage. Should she apply for the mortgage modification before bankruptcy? How much does my income/expenses matter, even though I’m not on her loan, but living in her house, and I have my own rental property I get income from.
My mortgage company is saying they are only helping those homeowners who are already at risk of foreclosure. Since Im current on my payments they wont even talk to me. We have having difficulty making our payments every month, my husbands income has significantly decreased over the last two years(self employed construction business). What can I do, just not send in the next payment….
We are very confused!!!! My husband loss his job in Nov. and we have done everything to stay above the water to keep our mortage on time but it is starting to get a little hard because we only have the one income. We are behind in other bills like our credit cards. We got in touch with our company and have been told they can only help us if we are a month or more behind and if we have fannie mae/freddie mac loans. We have fha and not behind, how can we get help before this really gets bad for us? Reading other information on this, we don’t see that we can’t be helped, we have answered all the questions on this and it doesn’t mention all of these things we have to meet to get help. Help and very confused!!!!
I AM A 64 YEAR OLD RETIRE WOMAN WHO REFINANCED IN SEPTEMBER OF 2007 AFTER MY DIVORCE . I HAD TO REFINANCE TO CHANGE THE MORTGAGE NAMES AND TO PAY OFF MY EX-HUSBAND. I HAVE BEEN CURRENT ON ALL PAYMENTS MY HOSE IN UNDER WATER. I AM UNABLE TO REFINANCE AND WAS TOLD TODAY THAT COUNTRYWIDE IS NOT DOING LOAN MODIFICATION. I NEED HELP. FINANCIAL STRAIN.
My monthly payment is currently at about 47% of my monthly income which
resulted from a 50% drop in my pension.The down turn in the ecomony
has reduced my pension duration to
about one year.So,I’m struggling each
month living on social security and
pension.Payments are current,but I
need help from my current lender,
Wells Fargo.
I would like to know if I qualify for a loan modification if we haven’t pay the mortgage for 20 months, I lost my job and got a new one just 6 months ago and my paycheck is 50% less that what I used to earn, I recently file for a chapter 13 bankruptcy wich stopped the foreclosure but I don’t know if i still qualify for the modification. so confused please help!
hi i would like to know if this program help me ,now i am working and i was behand my payment 9 month ?
I find this program exactly as described on the news & by Pres Obama. He is creating accountability through documentation, which will be audited and is incenting the servicers w/a payment to get the paperwork done correctly according to guidelines and paying the incentive with a tax credit – if the home owners uses the tax credit, then the person servicing the loan (handling the documentation) will be able to further claim their end of the tax credit (bonus) dually…. this creates an auditable trail. I guess you’d have to do audit to understand how fluid this program is, but the fact that it is laid out prior to being published is HUGE and this is very feasible. There will be some who fall through the cracks, but as a person who is in default…this is a very real and realizable plan. Now, if I can just find out where and how to apply.
I am so disappointed to see how things are going in our country. Today we have people loosing homes faster than ever and the only thing we can say to them is sorry. I don’t understand how we can continually bail out industries and stand by while people become homeless. If I can’t pay my mortgage how can I afford a apartment which today is just as expensive as ever. If you have a answer to this please provide it everyday we are sinking further and further. Sincerely concerned citizen
i received a letter stating my home will be sold april 1st 2009, the date is march 11, 2009. this did not give me 30 days. i have been speaking with my loan company concerning a loan modification, they told me they would get back to me. the next thing i rec’d was the letter in the mail telling me my home will be sold. need help keeping my home.
I have 10 member of my family and only I’m working but right now I got laid off too am I qualify for loan modification and if I can do I can reduce my principal balance because my house market value is way lower then my principal balance how can I apply
thanks
I spoke with my loan holder -GreenTree and they informed me that I wouldn’t qualify for this program, when in fact I do my payments are over 35% of my income and alot has changed since I got the loan in 02. What can I do to force them to look into a Loan Modification for my loan?
We are very confused!!!! My husband loss his job. and we have done everything to stay above the water to keep our mortage on time but it is starting to get a little hard because we only have the one income. We are behind in other bills like our credit cards. We got in touch with our company and have been told they can only help us if we are a month or more behind and if we have fannie mae/freddie mac loans. We are not behind, how can we get help before this really gets bad for us? Reading other information on this, we don’t see that we can’t be helped, we have answered all the questions on this and it doesn’t mention all of these things we have to meet to get help. Help and very confused!!!!
i live in queens county of ny. i have 15years mortgage. ihave been paying
my obligations in time. but at current economical situations i need to have half mortgage to make me pay intime my mortgage. i am selfemployed.
my payment should be reduced by ints.rate and extending the years.otherwise big problem and hardship.
i have countrywide mortgage. could you guide me?
All questions and no answers – i am in the same boat! Survival of the most fit i guess. I am just sad to have to move my two boys out of a safe and wonderful neighborhood into the unknown all because I can’t find anyone at US Bank to look at my situation for a loan modification. Lost in the woods.
The problem that still exists is that banks like US Bank are inundated with struggling homeowners who need help. It’s like Survival Island out there. Yes, you bet it is survival of the fittest and you have to be ready to fight daily. Keep your chin up and hope (and pray) that you get help. It also helps to build back up plans in case you don’t get help. That gives you hope that no matter what happens, you’ll be OK!
Chris,
You have to be able to not afford your mortgage payment in order to qualify for a loan modification with Fannie Mae. Have you tried to get a refinance under the new plan?
I am Dr.Sirleaf. My wife and I pay our mortgage on time, even though our income is low and other bills have imposed economic constrains on our family, how can we qualify for President Obama’s Loan Modification Policy in order to help us refinance and reduce our mortgage?
Thanks,
Dr.Sirleaf
Is there any help for us with this Obama loan modification plan? In our situation my husband and I refinanced about 2yrs ago in a very bad type of loan an optional arm loan. As we now realize. We have only been able to pay the minimum monthly and our principle has increased tremendeously approx. over $50,000. presently. We have struggled to keep payments on time and never been late on mortgage payments however it has been increasingly difficult to get nowhere with our mortgage principle that keeps going up and nothing down. On top of this it has been not only a financial struggle but emotional one and much more since my husband lost his job with company that closed it’s doors last year and we glean everything out from our small homebased business that only he and I do together. When we did the refinance we also took money out to help us survive on and we have depleated that funds and are running dry. My husband is about to give up and think we have no hope but just sell the house by short sale and try and get something. I still have some hope that there has to be something out there that can get us out of this messy horrible existing loan.
My question is why are the banks not implementing any of this? I keep hearing I am under review but that was since November 2008. I am very confused and am about to walk away and rent.
Who do I contact to get all this going? My current lender is not being helpful and putting me on hold.
You can try 888-995-HOPE or http://www.naca.com. You will be placed on hold no matter what you do and it may take months. Make sure to place your patience hat on b4 you get on the phone every time. Good luck!
The problem Dave is that they do not have enough staff to help everyone. They are implementing thee programs, but they are lost in a sea of strugggling homeowners just like you. The only thing you can do is call more and maybe try 888-995-HOPE or http://www.NACA.com
What is going on with the USDA single family loan income modification? First it was to be Jan 20th. Then it was to be tomorrow, March 20th,but it was postponed again!
We have put an accepted offer on a house that was pending on the promised modification to take effect tomorrow.
It certainly seems that if the goal is to get the economy going, pulling the plug on so many people waiting for this modification was not a smart thing to do.
How certain is the April 20th date? We understand that this is supposed to be the last postponement but what happens if it doesn’t take place. No modification at all?
I was just on the phone with Novadebt and Countrywide to discuss loan modification. The Countrywide representative says that they CANNOT COUNT UNEMPLOYMENT AS INCOME. When I asked her where this rule originated, she could only tell me “the government.” WTF?
Unemployment is over 10% (the official number, not the real number), the economy is going to hell, and supposedly they want to help people. What a crock of shite.
Hint: if you are receiving unemployment benefits and wish to seek a loan modification, call your unemployment money received “rental income.” Countrywide bought this from us, but according to them we still didn’t qualify. No surprise there. F*ckers.
My house was foreclosed last January 09. I tried to work with my lender-wells fargo and applied for a loan mod but was denied. I owe $720000 and the house was just recently sold by the bank for $370,000. What confused and irritated me was the fact that they just sold it for $370,000. Why didn’t the bank just approve me for my loan mod and lower my principal balance. If they gave me the house for what it’s worth right now, I would be able to afford it.
Kc of San diego
my home has lost it like 75% of it’s value from when I purchased it and now the houses in my area is selling a lot less, I am out of work at this time. on a forbearance program with my mortgage company that has made my payment real high and my credit is bad, I have been making my payments but I am really killing myself trying to make them and at this rate I do not know how much longer I can hold on. I can not sell because I am upside down by a lot. I would like to stay in my home if possible but I can really use some help here. is there a program that can help me unemployed/self employed home owner trying to keep his home.
There should not be any loan modification program at all. People will try to keep their homes no matter what if they are not under water. Here is the simple formula, push reset button, reset home price (cut principal) to late 2003 price level, use the statistical data in that area. After that you can’t afford it you have few monthe to pack your bags. The problem will take care of itself. The current loan mod has a flaw, it does not reduce principal, people still have incentive to walk away.
Can you tell me where to find a list of companies that are participating in Obama’s home program. I am current on my mortgage, but it is getting harder and harder to make my payment which is set to adjust in 8/09. I contacted Countrywide. Don’t qualify for their modification. Are you kidding me. They say ask for help at first sign of trouble,yet no help!!!!!
How do you acquire the Presidents home modification program instead of all these scams. Where do you start.
Can I still get a home modification from someone if I am filing bankruptcy.
When does the loan modification start. I live in MN and spoke to a Wells Fargo rep who said they really don’t have any info yet. I am not behind on payments but cutting it close each month. Should I contact TCF who holds my mortgage?
confused.. we are 2 months behind on our mortage with wells fargo, the investor is ginnie mae and it’s fha insured.. now I know that remods have to follow the fha guidlines. Is that the same as obamma’s plan ? Now if Wells Fargo is participating in the program does that mean they have there own in house remodification or do they have to follow obamma’s guidlines ?
Loan modifications under the new MAKING HOME AFFORDDABLE PROGRAM:
Announced March 4, this federal program provides $75 billion in financial incentives to lenders so that they will reduce interest payments. In some cases the program allows for a reduction in principal so that the monthly payment will not exceed 31% of the borrower’s income, but that reduction is only temporary. The set-aside portion of the principal will have to be repaid when the loan is paid off or refinanced or the house is sold.
It’s for homeowners who “have experienced a significant change in income or expenses to the point that the current mortgage payment is no longer affordable,” according to program guidelines. But there’s an important catch: It’s only for “working homeowners struggling to retain homeownership.”
The jobless need not apply, which is a serious setback in California, with an unemployment rate that exceeds 10%.
Other restrictions: Investment properties are out, as are most McMansions bought over
the last few years, because the unpaid loan balance has to be $729,750 or less to qualify. And the program applies only to loans made before Jan. 1, 2009.
Finally, the program isn’t mandatory. The final decision is made by the lender. But the new plan could benefit working-but-struggling borrowers who have kept payments current. Banks may not consider them for modifications unless they are
actually delinquent on the mortgage. The new program welcomes them to apply. Also, owners of homes that are underwater — that is, the amount owed is more than the home’s current value — are eligible.
NOTE:Any foreclosure action will be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options. In the event that the Home Affordable Modification or alternative foreclosure prevention options fail, the foreclosure action may be resumed.
How do I start the process?
Please sent me Information. ASAP
I’ve been trying to modify my loan will WF for a yr – now they claim to be reviewing it. How much longer?? Am I getting the run around or have they been really reading my file for 1 yr?? How can I get WF to modify my loan under the obama plan? Does anyone know if the obama plan is forcing investors to participate? What use is it if the investors & lenders are not forced to participate?
I became disabled as of May 2007 and have struggled since then to make my mortgage payments. I am not currently behind but my credit is now bad since I could not make credit card payments. Do I qualify for the loan modification program?
we have a loan with countrywide. we submitted for a modification 1/09. I was surprised the end of february I received the documents fedex for the modification approval. The documents consisted of 6 pages of very vague and general info regarding the modification. I went to the cw website and it stated we were approved and our negotiator would be calling us with all the specific details re: the modification. It is April 2009 and I have never spoken to our “negotiator”. I call almost everyday for specifics re: the modification and I speak to a different customer service rep. each time. Some have been helpful and some have been rude and accusatory to me stating we got ourselves into this mess with our original loan. I really resent the attitude when the customer service rep. has no idea how our loan even transpired. We put 20% down on our home and have never been late on a payment. At the time of the sale we had 2 real estate agents (ours and the sellers), the loan broker, and the seller pushing to close the deal. The broker pushed the option arm with a monthly adjustable interest rate stating it was a “great” product!!! Well here we are now in this “great” product about to lose our home, we have already lost our 20% because the house is upside down. I am unclear what they actually modified, they did take our back taxes and put it on the principal which is a good thing, but our option arm was a monthly adjustable interest rate (it has actually been to our advantage with this monthly adjusting because the rate has gone down to 4.25%) and I am being told by different customer service reps that the loan will continue to fluctuate monthly. They say that modifications cannot change the original terms of the loan ie., monthly adjustable. So what is the point of the modification? I was told to submit for the Obama refinance, so I did. I got a call back from the HASP team and they said we would not qualify because our loan is more than $417000. I researched this and the man was wrong, we are in Orange County and the loan can be refinanced up to $729,000. Although, we do not qualify because we do not have a fannie mae or freddie mac loan, this I found out on my own not from the expert who called me with the wrong info in the first place. I am very frustrated because although our interest rate is affordable now, in a year from now we will not be able to afford our home. I do not want a write down on principle or a hand-out I just want them to lock in the current rate for the remaing term of the loan and we could stay in our home for the rest of our lives which is all we want. I need some answers, what should our next move be? should I file for bankruptcy and have the judge lock in the rate for us. I see no other options. Is Naca able to lock in loans? Are there private investors who assume loans? HELP!!!!!
Many questions can be answered through
http://www.ustreas.gov
http://www.fha.gov
http://www.whitehouse.gov/blog
Loan companies are not required by law to participate in the program. US Treasury will began to post names of participating agents. You can also review individual websites (loan companies) to ascertain if they are or will be participating in the program.
I went from 2,700 month to 996.00 a monthto stay above the water I really this loan to help me keep my home.
Countrywide is all over the place. Today I was offered a refi at 7.5% interest (todays rate is about 5%), then the next department they transfered me to offered me 6% (where I am on the 1st now) with $3500 closing costs…both raising my payments. What help is this? They will be rude and discourage you from changing anything. Also they told me that this only includes your 1st note, not the piggyback they talked you into rather than pay the PMI. Crooks.
We’ve applied for HASP with Countrywide and I’ve done a lot of research on it. If anyone here wants to know what I’ve found out, you can visit my website The Juggling Homemaker. Good luck to you all!
The HASP plan is simply going to be a mass mailing if you qualify of loan terms based on the Obama Plan (Making Homes Affordable) they will get incentivised to modify your loan. So if you have a fannie mae or freddie mac loan and were turned down previously my suggestion is to resubmit your financials and supporting documents so that you can see about qualifing. I deal with Countrywide on a daily basis and this is what they are doing
We have been “declined” by Countrywide
and we don’t know what to do. Medical issues are growing ever larger………one
unchanging income does not begin to cover expenses anymore………..please help us!
401-xxx-xxxx (removed for your safety)
I’m glad you posted this. An educated consumer is the best kind.
I’m in a chapter 13 as of two months ago. I have a negative arm loan through Country Wide. Does anyone know when Obamas Home Mod. is going to be passed? I heard that there will be a cram down for people in a chapter 13 through the bk judge? Looking for extra help. Thanks
I DONT KNOW IF I HAVE A FANNIE MAE OR FREDDIE MAC LOAN??? IT IS THROUGH CHASE MORTAGE?
To all with WF loans-
The problem with the Obama plan is WF has opted into the Home Affordability program but the contracts that will enable loans to be modified per the Obama plan have not been finalized. No one will get a modification without this step in the process. I was told that these contracts will be signed and done in May 2009 — which for many is too late.
The Obama plan is a good plan for some people — but the plan hasn’t started depite being revealed on March 4th. For others, there is no current solution.
As for context, WF adjusted my second mortgage (ie, Home Equity) from 7.50% to 0.50% for 4 years. The first mortgage (5 times larger) is the one that is creating the financial woes and their Home Mortgage team isn’t doing anything right now but taking applications and waiting for Obama’s plan to be signed up.
Consumers can go to freddiemac.com and fanniemae.com to check what kind of loan they have. Freddiemac requires much more information but both searches are instant. This is how my company checks our clients’ status.
We are in a loan with Countrywide as well and are going crazy! We were told that we were approved for a modification and even sent papers only to find out that they never processed the modification. We have spoken to their legal department and were told to wait to hear from them when they contacted us the lady said that they would not honor that modification and that if wre wanted to keep our house we would have to except a modification that is nothing but another sub-prime loan. Countrywide now wants us to pay $230,000 on a $195,000 loan and uped our interest rate. Our house is not even worth $150,000 now. They lied to us from the beginning and railroaded us into this terrible loan. Who protects us? How can they get away with these practices? Our only choice is bankruptcy. My husband is ill over this he is suffereing from high blood pressure and has even been in the hospital for what the doctors say may have been a very minor heart attack. This is a very healthy and responsible man. Not only am I scared to loose our home but my husband too. The stress is killing us. We were told if we tried to sue it would cost thousands and they have attorneys that are trained to delay and string it out so that we could not afford it.
my home has a short sale pending awaiting from my lender. it’s being reviewed. i also applied for a forbearance for 6 months trough NACA. Do I have a chance to stay in my home
I had to file chapter 13 to save my house. but they take nearly all my payroll and half of my wife’s in the plan. Is there any help for us. Please contact me asap
I am a ww2 va widow, homeless. We sold our house when my husband died recently and I want to make our only remaining asset, a condo in maryland a “home”. I am homeless at present and only have social security as income.the property is serviced by Chase. I’m trying to get a loan modification from them. this is my only hope please help. does obama,s plan or any va program help me?
I was told I would qualify for consolidation. My payments are now current but my loan company told me that during the 3 month “trial period” where my payment would be lowered, that they have to report my loan as essentially being paid late. In effect, this would negatively report on my credit report. Why would this program be designed for me to have to get negative credit reported in order to qualify?
After reading all these upsetting stories from people who have countrywide as their mortage company like I do. I’ve decided to not contact them about the modification program. Sounds like countrywide trying to scam everyone as usual. I am struggling to pay my mortgage every month but, I’m not going to let countrywide suck me into more headaches. I just threw my letter away from countrywide. If anyone has had success with countrywide Let me know,
How can I modify my mortgage and lower my
lower my monthly payment? I have not fallen behind, yet. I do not have much left afterwards pay off my the rest of my bills.
Different companies/lawyers call and promise to give us what I want but at a ridiculous price. If I knew how I would help some one else out and just knowing that I helped save their home is good enough for me! Rewards come in different forms. Please help ALL of us. Who can we trust?
I’ve been dealing with Wachovia. For 2-3 weeks, I got the run-around. Called about 6-7 phone numbers, transferred many times. They flagged my loan. So make sure you call and do the same.
Now finally, I talked to someone who made sense and said my loan IS one of the pre-qualified. I did nothing to get that except that my LOAN qualifies.
They are sending letters out around May 15th to pre-qualified customers. That is, if you have a Pick A Payment plan, etc., like me. So, if your loan is a risky one, you will get a letter from Wachovia.
I’m sure that is when I will get the application and send all my proofs.
I hope so. Anyway, good luck to all and I think that some of you were merely premature in going for a mod., as the banks have to have trained employees for this one!!
i live in riverside ocunty ca, one of the hardest hit areas ( top 4 ) of the country regarding the forclosures. i have struggled for a year with my payments and already modified once with this lender. i spoke with them regarding being upsode down almost 300k and my payments being 3200 monthly at 7%. they said they are going to have an appraiser contact me within 3-5 days ( which has not happen as of yet ) and see what we can agree upon as to modification. i do have to say my lender has been really patient and seems to be trying to work out things with their borrowers. we will see in the end???? American Home Servicing…..
i am current on payments and clean credithistory.but my house value gone down and want to take advantage of this program
by taking this loan , will there be any negative impact on your credit file or home and can governemnt do anything bad in future?
any ideas
will there be any negative effect on your credit or house?
My bank says that only Fannie Mae and Freddie Mac loans qualifies for the President’s Homemaker Affordability and Stability Program (HASP). I took an early retirement in 2008 because of illness. Our income has decreased and it is difficult making our monthly mortgage payments. Why is the program only for Freddie and Fannie customers
Marilyn K. Dorlac
PMB 153 21919 Sherman Way
Canoga Park, CA. 91303
April 2, 2009
To: Whom it may concern: “Mr. President Obama”,
My name is Marilyn K. Dorlac, I have read many of the comments about the Home Modification Program. I have chosen to speak out more about my own personal fight with Preditory Lending Abuse!!!!!!!!
Today I am going to tell you my story again, I have told it before I will tell it to you all as well. Some one has to listen to me and hear my voice today.
I was tricked into this house and forced to pay a high rent once I agreed to take the house in 2006. The rent was tallied at $2,150.00 a month. Later after living in the house for one year, the owner of the house said that he had lost his job and that he had to sell his house. This was a shock to myself and my family because we already had filed for bk. The bk happened in 2001. To make a long story short without anymore details to how I ended up in this mess. I do have a “Law Firm”, Arase Law Firm, of which I have had at least handling my home modification. It has been about 6 month since they have been hired by me to help me with my situation of my loan. I have been waiting ever since for them to fix the problem but to this date since August 2008 to present 2009. It has been 8 months, the “attornys” have called me from time to time, and say to me: Your loan is in review, your loan has been sent to an agent for special review, The latest has been your loan is in the final stages you should be receiving a package soon to sign for the new modification. Looking for it I have asked them how much it will be they still will not answer me yet. SO I wait and wait and wait. So much pressure, so much unfairness. When will it end?
I have continued to struggle and pay all of my bills on time and car payments too, to keep my credit score from falling to much. Right now They the mortage company has put a million dollors worth or credit on my credit file. I have hope in the American Dream that one day all of this will be over and we will all look back and say we witnessed the worst betrayal of all times, in the Housing Mortgage Industry!!! And yes We all Succeeded at winning against all odds!
I do believe in my heart that this is a test of true strength and determination to hold on the the American dream at all cost!
For the Dorlac family this has been a real shock on us as well as a great set back to us, “but we will not walk away from our home”, we are determined to stand and fight with the rest of American families, and continue to hold on to our dreams as Home Owners in America! Lets just face it bluntly for a moment there are obstacle that we must face to show that we are leaders in today’s Mortgage Crises, but I feel that this is what will prove where the victory lies in America… The tears that are shed from in justace will always rain, but the truth, and equality owed to us all shall always set us free, once and for all!
On this note I will end by saying, stay strong, continue to fight against in justace, and embrace fellow Americans and always remember that strength is in numbers! “In God We Just”. It is about the Money, the powerful people, and the lost American Dream! Please for the mercy of the suffering children lets give the families what they are praying and working for , the American dream Mr. President Obama! You do have the power to turn things around lets see you do it! Thank you from the Dorlac’s and other American’s struggling to keep their homes.
Mrs. Marilyn K. Dorlac
Concerned Citizen in the USA
Here is a good site to get information on this matter http://www.makinghomeaffordable.gov/ it is real easy to use to find out if you are eligible.
I have a question — does the bank have to refinance or a loan modification if you meet all criteria in Making Home Affordable program. My loan is a Freddie Mac and the bank is US Bank. So far I haven’t gotten any where with them. Any suggestions help are welcomed.
Myself and my wifw are hatd working people yet we are behind in mortgage payments.We just cant seem to get caught our credit is shot from being laid off for abit.What can we do to sae our home.We are trying to work with Chase home financing but nothing yet….We also have 4 children to worry about aswell ???Plz any info on help will do
Help! I am a 65 year old male retiree who’s continued to work part-time after “retirement” while paying for most of the expenses associated with a home where I am a co-owner –my name appers on the Deed and the other person’s name is no the mortgage. I may have to stop working altogether within the next two months due to health reasons. Because I will be on a lower fixed income, I may not be able to pay for my share of the mortgage which is over 2/3 the total monthly payments. We need to modify. How do we do this? Where do we begin? We are first time buyers and do not quite understand these procedures. Please help!
We just used this plan and it was SUPER easy and our mortgage company brought it to our attention.. Our Mortgage WAS $2100/mo which was fine before my husband got laid off and lost 1/2 of his income. We just modified our loan down to $1153/mo and that includes homeowner ins and taxes. It was so much easier than a refinance or an inital mortgage process. The lender (EMC) did our application over the phone, fedexed us the paperwork, we signed it and provided a tax return and 2 pay stubs and it was done (provided our first 3 payments are on time it will remain in effect for the duration of the loan unless we refinanced, etc)
This has truly saved our home.
amh is not modifying loans i fear i will lose my home very soon does any care
My husband and I currently have our mortgage with Foundation Bank, a Div of McKenzie Banking Company in Paris TN. We currently have a 30 yr. fixed rate mortgage with a interest rate of 6.50%. Our total monthly payment of principle, interest, taxes and insurance comes to $780.00 a month. We have never been late on our mortgage payment. I used to work for this same bank until June of this year 2009, when I became permanently laid off. I am now receiving unemployment income in the amount of $260.00 per week. My husband receives a pension in the amount of 650 a month & receives part time income averaging around $800 a month. Our current debt to income ratio is around 31%. Once my unemployment runs out in December of this year 2009, our debt to income ratio will greatly increase. I have been trying to find a job, but as of now, I have had no luck. There are not very many jobs available in this area. Once my unemployment income stops in December 2009, we are very much afraid we will become delinquent on all of our monthly payments. We are currently cutting back on everything.
Is there any loan modification that we would qualify for? We do not want to get into a situation were we would not be able to pay our monthly bills. We have been very diligent in staying current in all our bills.
Please advise us to what maybe available to us in refinancing our current mortgage in order to reduce our monthly payment.
Thank you for your time and consideration.
I applied for the loan modification back in April and was told they had everything they needed and that to wait 90 days. Every time I called them they said to resend current paystubs etc. So I did that 4 times. Flagstar Bank said they are having a third party called Sterling Home Retention take care of their files. So I had to talk to them. Sterling Home Retention apparently has gone out of business now and everything has been a waste. Flagstar Bank basically now says we sold your Loan to another bank Starting October 1st 2009 so you have to talk to them!! What a run around! So October I can deal with the new bank and hope that they don’t do the same thing to us!!
How to find the answers for the questions above?
I have been in a modification with Wells Fargo since May ‘09′ and have completed my trial payments. I have actually made an additional 3 payments plus my trial payments because the reps. at loss mitigation tell me to continue making them. Every time I call the loss mitigation dept. to see where my modification is progressing they tell me that my file is “in review” or they tell me that they will be sending me paperwork within the next two weeks(they are in fact lying because when the two weeks are over no paperwork). I have been told lies almost everytime I call them. I will speak to one rep. and call back a day later(repeating what the othe rep. told me) and they would tell me that they don’t know where that information came from. I don’t know who to believe anymore. They keep telling me that I need to send in documents each month, which I do, and nothing seems to be progressing. I wish WF would get their act together.
My friend is going through the same thing with Wells Fargo and after 6 months of being told the modification is in review they get a letter that says either pay everything or foreclose. What’s up that? Does anyone know how to get the bank to follow the law!
In Dec. 2008 we requested a loan modification from CHASE because I was told i have breast cancer and our payments were 2465.00 ea. mo. with a interest rate of 11.99%, At that time we were not behind. After waiting a yr. Chase said we do not qualify for the modification because Bob had a 6% increase in his income over the last 3 yrs. Now Chase wants all the back due monies now, and the whole time we were on the modification program Chase was reporting us late on the credit agencies. Now our credit is upside down and we can not get another loan due to their bad banking behavior. What do we do? Is there any real help out there or was this just a great political plan to bankrupt the country. THANKS BANKS FOR NOTHING.
RE: Ellen’s comment, thanks banks, for nothing. We must remember, that banks are for profit….it’s all about them doing what they do to survive, and make a profit. I think if thanks are given, the Thanks should go to our government. In creating these programs, then not providing sufficient over-site to make sure that they are being run properly. With the money given to banks, it’s akin to giving liquor to a drunk….they’re going to do what they do best, consume it to their satisfaction, damn the consequences! Seems there is always someone there to pick up the pieces. In the case of the hopeless drunk, it’s social services. In the case of the banks, it’s the hapless, hardworking middle class TAXPAYERS!
Sometimes it really makes you wonder why we work so hard, just to get screwed over, and over, and over.
Hope you all have a happy holiday season!
TRY DEALING WITH HOMEQ
WELLS FARGO
DEUTCHE BANK (ALL THE SAME)
THEY DONT CARE AND NEITHER DOES THE GOVERMENT
ALL THE MODS ARE NOTHING MORE THAN A RUNAROUND. IVE BEEN GOING THROUGH THIS
BS FOR 18 MONTHS
I started the Home remodification program back in July 2009 with Wellso Fargo. It took me until Oct to get ant kind of response. After getting all of the paperwork into them I received a letter stating thta the application was cancelled at mt request, I called several times and each time I received different instructions and answers. I was finally given a 3 month trial period. They sent a letter to confirm and said make sure my payments are on time. ( they were). I then received a letter stating that I do not qualify and they did not have a loan amount that I do qualify for. My loan was current until Oct when I was put on the 3 month trial. There was no real explaination on why I did not qualify.