USA Today published the following common questions and answers regarding avoiding foreclosures and modifying mortgages on Thursday, October 15:
Q: Can the federal government’s Making Home Affordable program help if my loan is not owned or guaranteed by Fannie Mae or Freddie Mac?
A: Yes. Program is aimed to help borrowers who are struggling to keep loans current or who are already behind on their mortgage payments.
Q: How do I know if I am eligible for a modification under the federal program?
A: All of the following must apply. You must be the owner-occupant. You must owe less than $729,750 for a one-unit property. You must have a first lien mortgage that was originated on or before January 1, 2009. Your payment, including taxes, insurance and HOA dues must be greater than 31% of your monthly gross income. Your mortgage payment is not affordable due to financial hardship that can be documented.
Q: Do I need to be behind on my mortgage payments to be eligible?
A: No. You are eligible if you are at risk of imminent default. EX: If your mortgage payment will significantly increase.
Q: What services can counselors provide – is there a fee?
A: Services from HUD-approved counselors are free. A list of HUD-approved counselors is available at www.hopenow.com.
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