Making Home Affordable Program

[hollieplus2]

Anyone done this yet? How did it go. I just called my bank and they are running the numbers?

Our home is backed by fannie mae
Never missed a payment, never late
Owe $150,000 worth about $185,000
Current rate 7.25%
Stable job and no income loss

Why would they need to run the numbers? According to the website we would qualify? Anyone have any insight as to the process. Thanks.

 

[hollieplus2]

Anyone?

 

[Liberty Belle]

I've never heard of this program. What is it, exactly?

 

[lil mermaid]

Not completely sure - but isn't this program for people who have had a loss of income, or are upside down in their mortgages?

 

[hollieplus2]

According to the website the Modification is for people who lost income or upside down, the refi is for people who couldn't refi because of falling home prices and who's interest rate is high. The website is

http://www.makinghomeaffordable.gov/

 

[Golf4food]

Last I heard only a very small handful of people had actually been able to use the program or complete it, in spite of thousands applying. Brilliant. Hence why they were on the news again a week or two ago about new changes they made to make it easier to include more homeowners.

So far nothing but another program that sounds good on the news but is worthless in real life.

 

[dairyou]

I know that if you carry a second the banks were having a hard time getting it approved. We considered it but we are at 5.75. It would have to be down a point for it to be even a consideration for us.

Good Luck!

Deb

 

[hlane]

We just got approved for a trial mod today through our mortgage company I'm too embarrassed to admit our numbers (horrible, horrible rates but we could refi in a couple years they said, umm yeah right!) but this will save us SO much money and a whole lot of stress!

My brother was also approved about a month ago through his co as well. He had an ok rate but is recently divorced and had a drop in income when she left.

Thank God for this program, it really is helping people!


Anyone interested in getting a loan modification there is a forum all about the process (its not an easy one, trust me!) google "Loansafe" and you'll find the site, its been a great help & I would have never gotten this far without it!

 

[Jestocost]

As noted, the modification and refi programs are completely separate.

The OP has applied for the refi program and there are things that need to be validated. The trickiest of those is the current value of the house, which can be done in one of several ways depending on how the lender wants to do it, how old the mortgage is, etc. Still, they will allow the new loan to be as much as 125% of the value home (with certain restrictions on loan type and other factors), so unless a borrower had little or no equity to start and/or has a home in one of the areas where prices have dropped the most valuation isn't typically a deal breaker.

One major sticking point is if the loan being refinanced has mortgage insurance on it or not. If it doesn't have MI attached, things are much easier. If it does have MI attached, it can be done but the refi may have to be done by the current servicer and not another lender.

Regardless of the fact that the borrower technically doesn't have to qualify for the new loan as long as the payment is being reduced, Fannie still requires the lender to do some analysis for whatever reason.

What people have to understand is that all of these programs are very complicated, the government and the GSEs have taken some time to finalize the details, and that the details have changed several times since the original and subsequent announcements. That makes it very hard for lenders to get the programs up and running and to keep pace with an ever-shifting landscape.