5 Facts About the Obama Homeowner Stimulus Plan
A rundown of the Homeowner Affordability and Stability Plan announced yesterday.
- Aims to allow 4 million to 5 million homeowners to refinance mortgages
- Establishes $75 billion fund to reduce homeowners' monthly mortgage payments
- Sets $6,000 estimate for highest average resulting increase in housing value
- Provides $1.5 billion in assistance for renters displaced by foreclosure
- Gives Fannie Mae and Freddie Mac a $50 billion increase in allowable mortgage-backed securities
Read more Five Things.
Sources: U.S. Treasury, MarketWatch
Reader Comments
RE: Loan Stimulus
If you have a Fannie Mae or Freddie Mac loan you do not have to be behind on your mortgage to qualify for this program. If you have an FHA loan, there is help on the way that is similar to the HAMP (Obama Plan) Program. If you have a VA loan then yes you do have to be behind on your payments to qualify for help as there isn't a plan in place for VA at this time.
You do not need to call an attorney or pay anyone to help you do this. Call your lender! They can help for free. But, be patient. The lenders have been given this plan with no real direction or time to prepare for the thousands of calls this generates. Each file will be looked at by an indivdual and this takes time. Income will be evaluated and reporting to Fannie and the US Treasury will be done before a trial period is set up. You new payment will be based on 31% of your gross income. You must have income to qualify as your payment cannot be reduced to nothing.
You must supply your lender with the required documents in a timely manner so that they can evaluate your file. When you receive the initial packet from the lender read it carefully and provide everything that you can all at once. Most likely you will need to send 2 consecutive, recent pay stubs, your most recent tax return (signed) and any other documentation for income based on what you received, i.e., disability statements, retirement statements, etc. IF you are self employed the lender needs 2 years tax returns AND an up to date profit and loss statement for this year. You must fill out the financial form, including all the debts you pay, and the hardship affidavit. Return all of this to the lender ASAP.
Understand that thousands of others are also trying to do this too so it will take some time to get to everyone. Lenders are trying to help as many people as they can. Even people that work for lenders, like myself, are facing hardships too. I understand what you are going through. People like me want to help others and know what it is like to feel a loss of control when something happens and the threat of losing the home that your children live in is unbearable at times.
Obama Home Modification Program
Hello,
My name is Sean Rivers and I work for Alliance Law Center. Our center specializes in the Obama Home Modification Program. If you want to see if you qualify, please call me toll free at 1-888-252-5002 ext 1130. If I don't answer please feel free to leave me a message and I will get back to you as soon as possible.
Help
I own and live in Elizabeth CO. 2 1/2 years ago my husband and I bought this home with an 80 20 loan. It was then that my husband had a brain anuerism resulting in a massive stroke. Due to his employment situation,(working over seas for a major drilling company and did not pay into Social Security) We do not have the appropriate amount of quarters to qualify for SSDI. I have lost my job back in January and am collecting unemployment. Not able to make my complete mortgage has put me behind. I don't want to lose my home because it is perfect for my husbands wheel chair and his disabilities. Please help me
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