Since the beginning of the “Mortgage Meltdown”, to which Highlands Ranch was not immune, there have been programs to help people stay in their homes rather than lose them to foreclosure. Many of these programs were reactionary in nature and offered little help to most troubled homeowners. I personally know of several families that applied to their lenders and the government for help only to be frustrated with the paperwork, guidelines and process of receiving help. Even if they found their way through the maze of bureaucracy and received some sort of help, the programs did not address the root of the problem and people ended up losing their homes anyways. The real issue for most people is a loss of value in the home. The new Homeowner Affordability and Stability Plan could actually lower the loan amount owed by a homeowner.
Do You Qualify for Mortgage Help?
The devil is in the details. You DO NOT have to be late on your payments to qualify. The new program is for homeowners that are unable to refinance with conventional mortgages because they owe more than the house is worth. The first criteria for the HAMP program is that your mortgage is underwritten by Fannie Mae or Freddie Mac. You can enter your loan number on their site to see it your loan is with them. ( Fannie Mae ) ( Freddie Mac ) If your mortgage is with either of these agencies and you meet the following requirements, you should apply for assistance.
The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
The current loan-to-value (LTV) ratio must be greater than 80%.
The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.
Highlands Ranch FHA Loans Underwater
FHA loans that are underwater are handled a little differently than Fannie Mae and Freddie Mac. They call it a Principal Reduction Alternative Program. The requirements are as follows:
Your mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac.
You owe more than your home is worth.
You occupy the house as your primary residence.
You obtained your mortgage on or before January 1, 2009.
Your mortgage payment is more than 31 percent of your gross (pre-tax) monthly income.
You owe up to $729,750 on your 1st mortgage.
You have a financial hardship and are either delinquent or in danger of falling behind.
You have sufficient, documented income to support the modified payment.
You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.
( Information Taken directly from Making Home Affordable website )
I suggest contacting your current lienholder and Making Home Affordable 1-888-995-4673 at the same time. Send up the rescue flares and let everybody know that you need help. I have heard that the mortgage servicers are more receptive when they know you have contacted the government for help as well. It is a lot of work collecting the information that they request as well as making a case for your particular hardship. Take it with a grain of salt and push through. The chances are better than ever that you will get the help that you need.