Who is a responsible homeowner?
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. Darn…a give-away to someone who doesn’t 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 can’t 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 don’t 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.
