How can I apply for the new refinance program provided by the new stimulus package?
Michael W asked: I owe 160K on my house and its now worth 150K. How can I apply for the new program enacted by President Obama to help lower my interest rate and payments for my mortgage, thank you.
Erica
Tags: Mortgage, Obama, Refinance
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on Friday, May 22nd, 2009 at 1:25 pm and is filed under Refinance.
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May 25th, 2009 at 3:09 pm
Milton
I hope you can prove a hardship.. I also, hope your married with children and prepared to fill out copious amounts of paper-work.. Mortgage Help will be going to the most needy of the few… Single mothers with children, Minorities, and Elderly
May 26th, 2009 at 8:16 am
Sue
You are one of the lucky ones! I know people who have lost more than 50% of their equity in less than two years.
The President’s program will help you if you can prove that you are unable to pay your present mortgage payments, but you ARE able to pay a mortgage at 31% of your monthly gross income. You will need to apply for a loan modification. Your interest may be lowered, the term may be extended or the principal reduced (unlikely).
Every expense you have must be documented and you will have to provide all current income information to your lender. The way your package is structured will determine what you may be entitled to. I strongly suggest hiring a loan modification specialist (sometimes called loss mitigation specialist) to do the negotiating on your behalf. The lender will do the least that they can to help you, whereas a specialist will know what the most is a bank will do and might be able to negotiate a much better workout than you would be able to do on your own. Their services are not free, but you will not have to pay until they have actually accomplished a workout for you. It is definitely worth the money. Just make sure you are dealing with a legitimate company.
May 27th, 2009 at 8:58 pm
Glenda
I hope this program is not for such stupidity as a 10K reduction in value.
Oh and loan modification companies = BIG bucks that the diligent homeowner can do themselves by calling their own mortgage dept. and discussing their issues. I seriously doubt they will talk to someone who has a simple reduction in value of a simple 10K.