The Obama administration has come up with yet another program for distressed homeowners in jeopardy of losing their homes. As of August 15, 2009, homeowners whose principle homes are financed with FHA insured backing or Fannie Mae or Freddie Mac purchase loans may qualify for up to 30% reduction of their mortgage being placed as a silent second trust deed.
For example if your loan is $500,000 it may be possible for $150,000 of that loan to be converted to what in effect becomes a second trust deed. This amount would reduce the amount of the loan mortgage monthly payment because the payment would then be based on the sum of $350,000, thus substantially reducing the amount of the monthly mortgage payment required before. No payments are required on the $150,000 that becomes the second trust deed and the amount remains static for the remainder of the loan period never to be paid off until the maturity date of the loan. In addition the $150,000 doesn’t accrue interest.
For many homeowners in distress and struggling to meet their monthly mortgage payments, this could be a huge relief and even make the difference between a family losing a home or keeping a decent roof over their heads.
Details can be found at www.makinghomeaffordable.gov. Let me know if this information is helpful or if you have any comments.
The Foreclosure Fighter