Making Home Affordable Plan- How does it work, and will it help?

July 1, 2009 - PRLog -- Rancho Cucamonga- Many hardworking homeowners are struggling to make their monthly mortgage payments, and are sincerely trying to reach a mutually beneficial agreement with their lenders for the chance to not only stay in their homes but to pay lenders the money owed to them.  Unfortunately, today’s economic conditions make reaching to  such an agreement, a very daunting task. Jaded by the promises of fly-by-night loan modification companies, and confused by the explanations of attorneys trying to sell their services, many homeowners are left in the dark about the mortgage options available to them.  Yet one very solid option that each borrower and lender should at least consider is the Making Home Affordable (MHA) Plan. It has been proven from personal experiences that this program  has successfully helped homeowners stay in their homes.  

The Making Home Affordable Plan is a program created by the Obama Administration, and it is aimed at keeping millions of responsible families in their homes.  It provides incentives to qualifying lenders, encouraging them to work out loan modifications and refinancing for homeowners instead of opting for foreclosures.  It also provides incentives for qualifying borrowers, encouraging them to stay as current on their mortgage payments as possible. The Making Home Affordable Program has a refinance program (Home Affordable Refinance) and a loan modification program (Home Affordable Modification). The MHA also has a Second Lien Program, which works to reduce second mortgages in addition to first mortgages.

How does Making Home Affordable work? There are many aspects to MHA, but one key feature is the incentives it provides to both lenders and borrowers.  The Treasury helps lenders/investors and servicers reduce homeowners’ monthly mortgages. First, lenders must reduce mortgage payments to 38% of a homeowner’s monthly income.  Then, the Treasury matches the lender’s additional reductions dollar for dollar until the mortgage payment reaches 31% of the borrower’s monthly income. The Treasury also encourages homeowners to stay current on the monthly mortgages. Borrowers can receive a “Pay-for-Performance Success Payment” which gives the borrower $1,000 each year for up to five years, as long as the borrower is current on their monthly payments.  This money goes toward reducing the principal.

How to qualify for Making Home Affordable Plan?

Some general preliminary qualifications include the following: The loan must have originated before January 1, 2009 and must be owned or guaranteed by Fannie Mae and Freddie Mac. Borrowers must be owners who occupy the property, and the unpaid balance on the property cannot exceed $729,750 (for one to four unit properties). The borrower’s mortgage payments must exceed 31% of their gross monthly income and the borrower must be experiencing economic hardship. Detailed program guidelines can be found on the Making Home Affordable website at http://makinghomeaffordable.gov/

For more information on the Making Home Affordable Plan, or to determine whether  a person qualifies for the plan, the attorneys at the Stone Haven Law Group could be reached at 1 (877) 376 – MODIFY (6634), or a must visit at http://www.stonehavenlaw.com would be the best option.

e-mail:  info@stonehavenlaw.com

Company Profile:-

The Stone Haven Law Group, LLC, a law firm,  with its office in California, provides all needed help for making your dream Home the affordable way by opting for ‘Making Home Affordable Plan’. We have qualified attorneys with their expert opinion.

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The Stone Haven Law Group, LLC, a law firm, with its office in California, provides all needed help for making your dream Home the affordable way by opting for ‘Making Home Affordable Plan’. We have qualified attorneys with their expert opinion.