If you are one of the millions of people having trouble with your mortgage, the government is going to try to help you out a little. They are putting about $75 billion dollars into the housing industry to help homeowners refinance and/or modify their mortgages. However, not everyone who is having trouble is eligible, as there are restrictions on who can qualify. Some important points to review before trying to apply for help:
For loan refinancing
– You must be current on your payments and your mortgage must have fallen below the 20% equity threshold.
– Loan must be owned by (or have been packaged by) Fannie Mae or Freddie Mac.
– The loan must not exceed 105% of the market value of your house.
For loan modification
– Home must be your primary residence.
– Loan must have been taken out prior to January 2009.
– Loan must be for less than $730,000
– I believe you must enroll in debt counseling to be accepted.
I have written before (and got a ton of comments) about my thoughts on people who knowingly took on more than they could pay for, and I hope the government has something in place to help only those who made the right decisions and really need the help. For instance, I don’t own a house – because I couldn’t afford the payments in California at the time. That’s what financially responsible people do, and only those who have experienced real hardship/job loss/medical issues/plummeting house values should get much assistance from the Federal Government.