CNN Money reported today the Obama administration's foreclosure prevention program is open for business.
The multipronged fix calls for companies to help as many as 4 million struggling borrowers by modifying loans so monthly housing payments are no more than 31% of monthly gross income. Separately, homeowners who haven't missed a payment can refinance into lower cost loans even if they have little or no equity. This is expected to help 5 million homeowners.
To Participate in the loan modification plan, borrowers must:
-have obtained their mortgage before January 1, 2009;
-have a primary mortgage of less than $729,500;
-live in the property
-fully document their income by providing tax returns and pay stubs;
-sign a statement of financial hardship; and
-go for counseling if their total household debt-including auto loans, credit cards and alimony-totals more than 55% of their income.
The modification program will be in effect until the end of 2012, but loans can only be adjusted once.
I am really interested to see how this works out. I think it's a little to late. Most people have already lost their homes. Those who haven't are in debt up to their eye balls. The rest are so far underwater their drowning. Everyone in those categories probably doesn't meet the criteria. I really feel we need confidence, spending, and good news to get out of this financial disaster. But maybe this is the kind of news that will do just that. Let's give it a chance.
The multipronged fix calls for companies to help as many as 4 million struggling borrowers by modifying loans so monthly housing payments are no more than 31% of monthly gross income. Separately, homeowners who haven't missed a payment can refinance into lower cost loans even if they have little or no equity. This is expected to help 5 million homeowners.
To Participate in the loan modification plan, borrowers must:
-have obtained their mortgage before January 1, 2009;
-have a primary mortgage of less than $729,500;
-live in the property
-fully document their income by providing tax returns and pay stubs;
-sign a statement of financial hardship; and
-go for counseling if their total household debt-including auto loans, credit cards and alimony-totals more than 55% of their income.
The modification program will be in effect until the end of 2012, but loans can only be adjusted once.
I am really interested to see how this works out. I think it's a little to late. Most people have already lost their homes. Those who haven't are in debt up to their eye balls. The rest are so far underwater their drowning. Everyone in those categories probably doesn't meet the criteria. I really feel we need confidence, spending, and good news to get out of this financial disaster. But maybe this is the kind of news that will do just that. Let's give it a chance.
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