As the information about the government induced mortgage modifications becomes available I will be issuing bulletins on the government regulation as well as the lender interpretation of same. Meaning, even though the government says they have to do it, what are the banks really doing!

 

People who are in good shape with their mortgage and making timely payments (meaning the other people) are also eligible for a modification of their interest rate. This program is called the Home Affordable Refinance and was developed for those really pissed off that the dead-beats are getting away with it again.  The kick-off is April 4^th and the program runs through June 10, 2009. If you can, do it sooner rather than later before the banks figure out how to completely get out of it.

 

A few pointers:

 

·          Your loan must be owned or serviced by FNMA/Freddie

·          You cannot be late more than once in the past 12 months

·          The mortgage must be older than January 1, 2009

·          You have to live in the home as your primary residence

·          The new first mortgage cannot be more than 105% of the current value of the home

·          You documented income must meet income requirements

·          No cash out allowed

·          Closing costs may be included

·          The bank cannot reduce the amount of principle you owe

 

What documentation do you need to provide?

 

·          Last two paystubs and most recent tax return (2008)

·          Information on any existing second mortgage

·          Account balances and payments for all credit cards

·          Account information on any student loans, etc

 

 

A few questions and concerns:

 

What happens to the second mortgage if there is one?

Who orders the appraisal and decides the value?

What guidelines will the lenders superimpose to make it impossible to get through?

Will the banks call centers be in New Delhi?

 

This weekend, I am taking a little time from writing, working and biking to go to the Suffern (NY) High School Performance of Hello Dolly. Hope you are doing something fun this weekend, too.

As we learn…..enjoy your weekend.