foreclosure prevention plan

Banks are gearing up for the government announced foreclosure prevention plan to start towards end of the March.

The two-part plan calls for mortgage servicers to reduce monthly payments to no more than 31% of eligible borrowers' pre-tax income or to refinance eligible mortgages even if the homeowner has little or no equity. It also provides thousands of dollars in incentives for servicers to participate.

However, Banks are still updating their systems to process modification and refinancing applications. And they are waiting for clarification on a few points of the plan. This could create delays and long hold times.

It could be weeks before borrowers learn whether they qualify for either program

The nation's four major mortgage servicers - Citigroup, Bank of America, JPMorgan Chase and Wells Fargo are said to be gearing up for the onslaught.

To get latest info on the plan and see if you qualify go to makinghomeaffordable.gov.

Wally Sears, American Enterprise Bank of Florida, (904) 610-9771 wsears@aebmortgage.com