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Who is a responsible homeowner?

Posted by Rona Fischman March 31, 2009 03:08 PM

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The program called Making Home Affordable is out. I know there will be two very different reactions on this blog:

A. Great! Do I qualify?

B. DarnÖa give-away to someone who doesnít deserve it.

Before you hit the comment button, look at who can get these loans.

For the Home Affordable Refinance, you must
Own a house that was Fannie Mae or Freddie Mac insured.
You have to be current on your mortgage.
You canít be underwater.

For the Home Affordable Modification, you must
Own a home with a first mortgage no higher than $729,750.
You need to be current on your mortgage as of January 1, 2009.
You need to show that you have reason to be having trouble keeping up with those payments. That would include adjustments to the interest rate, reduction in income, or significant increase in expenses (the example they gave way medical bills.)

Your first mortgage Principal, Interest, Tax and Insurance cannot be more than 31% of your gross income.

These programs leave out a lot of people.

Group A: If you donít qualify for this program, do not pay for counseling. There are free services available. Here are the Massachusetts agencies where you can go for more information.

Group B: What qualification in this program still leaves a loophole for the irresponsible?

OK, now you can hit the comment button.

This blog is not written or edited by Boston.com or the Boston Globe.
The author is solely responsible for the content.

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About boston real estate now
Scott Van Voorhis is a freelance writer who specializes in real estate and business issues.

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