Option 1st Financial Blog

The last few Blogs have been devoted to providing information on President Obama's Home Affordability and Stability Plan which has generated a lot of interest. This interest is certainly reflected in the hundreds that have visited my Blog to read the details of his plan and the many who check back daily for updates on the plan. Well, the wait is over as the Administration has created a website that you can visit (http://makinghomeaffordable.gov/), to determine if you are eligible for either plan.  

The MakingHomeAffordable.gov website offers features including interactive self-assessment tools that empower you to determine if you're eligible to participate in either plan and to calculate the monthly mortgage payment reductions that you could realize under the Making Home Affordable program.

The website also features resources to find free, HUD-approved counseling services for anyone that has additional questions. But, just a reminder that while the self assessment tools will indicate whether you are eligible for either plan, only your loan servicer can determine if you qualify. To qualify, you will generally need to show sufficient income to make the reduced payments on an ongoing basis.

Just a bit of advice, if you are underwater (meaning that you owe more than the value of your home) on your mortgage or behind in your payments, do not pay anyone to negotiate with your mortgage company. Many of these businesses are operating illegally and HUD offers help for no cost. Many of the companies that offer to help charge a few thousands dollars upfront. Save your money, contact your mortgage company directly and negotiate yourself. Many lenders have packets online that you can access, complete and submit yourself. Go directly to your lender's website or call and request a copy of the packet that you need to complete for consideration of a loan modification or refinance and remember to mention "the Obama plan". As always, best of luck and I am available as a resource should you have questions!