-->

• Mortgage modifications are changes made to mortgage loans which them become permanent. Common modifications include changing the interest rate on the loan and getting a modification due to financial hardship. In 2009. President Barack Obama proposed some new allowances for mortgage modifications because of the financial crisis facing many homeowners from the recession.

• Fast Facts

  1. Mortgage must have been in place prior to January 1, 2009U.S. Treasury: Home Affordable Modification Program Guidelines (March 4, 2009)
  2. New applicants will be accepted until December 31, 2012U.S. Treasury: Home Affordable Modification Program Guidelines (March 4, 2009)
  3. Home must be owner-occupied and a primary residence, up to four units on the propertyU.S. Treasury: Home Affordable Modification Program Guidelines (March 4, 2009)
  4. Principle balance of up to a maximum amount of $729,750 for one unit propertyU.S. Treasury: Home Affordable Modification Program Guidelines (March 4, 2009)
  5. Principle balance of up to a maximum amount of $1,403,400 on a four unit propertyU.S. Treasury: Home Affordable Modification Program Guidelines (March 4, 2009)
  6. Must meet a debt-to-income ration of 38% or lessU.S. Treasury: Home Affordable Modification Program Guidelines (March 4, 2009)
  7. Lenders will receive $1,000 up front and each year for three years, for each eligible modification they processU.S. Treasury: Home Affordable Modification Program Guidelines (March 4, 2009)
  8. Homeowners will receive $1,000 per year for five years for each year they remain current in the programU.S. Treasury: Home Affordable Modification Program Guidelines (March 4, 2009)
  9. Program only available to loans guaranteed by Fannie Mae or Freddie MacAtlanta Journal Constitution: Details are vital in president's mortgage relief proposal (March 15, 2009)
  10. Estimated four to five million home owners will be eligibleWashingtonPost.com: More Mortgages eligible... (March 13, 2009)

• Controversy

  Some financial analysts and pundits have cried foul play on the Obama housing crisis plan. Their main concern with the new plan is that it helps those who are still treading water, while not offering a lifeline to those who are going under. In addition, as proposed, it allows the government to pick up the tab on some secondary mortgages, which would then be paid with taxpayer dollars. Some see this as those who played by the rules and kept their financial heads above water bailing out those who took out excessive secondary mortgages to finance various sundry luxuries like swimming pools, boats, home additions and more.The941: Helping families save their homes... (March 13, 2009) Tower Ticker: Rick Santelli on his CNBC mortgage bailout rant (February 22, 2009)

• Related Pages on Mahalo

  How to Modify Your Mortgage | Mortgage Hardship Letters | How to Write a Mortgage Hardship Letter | Mortgages | Obama Mortgage Plan

Categories

• View History
• Discuss on the Message Board
• Embed this Page
• Share this page