A wide variety of mortgage troubles have fallen on homeowners over the past months and, as a result, the Obama Administration’s Making Home Affordable Program has implemented extensions of the modification plans that many lenders are using to make homes more affordable. Unemployment and underwater mortgages have been two of the main issues at the forefront of homeowner concerns and as a result programs have been proposed to deal with these troubles.
Homeowners who are unemployed may be able to obtain mortgage assistance through the upcoming Home Affordable Unemployment Program. Homeowners who do not qualify for a modification, and are obviously unemployed, may be able to obtain a forbearance on their home loan payments for a set period of time or have their monthly mortgage payment reduced to no more than 31% of their monthly income. This can be helpful for some homeowners who may have lost their job or have a spouse who is unemployed, making it more difficult to meet financial demands.
However, homeowners who have been facing underwater mortgages are an entirely different situation as, for some, unemployment may not be the sole problem with their mortgage. Some homeowners have seen the value of their home drop substantially and, as a result, they are unable to pay their home loan payment or are in the position where they may never regain the value which was lost. In these cases, among others, some homeowners have been able to refinance their underwater mortgage through the Home Affordable Refinance Program. This program, for homeowners who qualify, allows for the refinancing of an underwater mortgage on homes that are owned or guaranteed by Fannie Mae or Freddie Mac.
While many lenders have stated they will begin using the Home Affordable Unemployment Program in August, there are opportunities for underwater refinancing at the current time. According to the Making Home Affordable Website the expiration date for the Home Affordable Refinance Program will be June 10, 2011, so homeowners with an underwater mortgage at the present time may be able to take advantage of this program.
Since many homeowners are facing various mortgage difficulties and each situation is unique, troubled homeowners are often advised to talk with their mortgage servicer first when seeking mortgage assistance. However, there are also online assistance options like the Making Home Affordable website which can answer many homeowners’s questions and offer advice about current assistance plans that are available.