Obama’s Making Home Affordable program

Just today, the details of relief for the responsible homeowners to modify or refinance their loans under FHA's Hope for Homeowners program where published.

Many homeowners are not able to receive a modification, under the current modification rules, due to a second mortgage. This new progran might help up to 7 to 9 million homeowners

When a Home Affordable Modification are being thought after on a first mortgage now the participating mortgage servicers will automatically reduce payments on the second mortgage that is associated with the home to a pre-set schedule.

The Second mortgage servicers have the option to extinguish the second in return for a lump sum payment under a pre-set payment schedule. Hopefully increase the equity of the home for a better outcome of the modification.

Additional Resources from the Hope for Homonwers website:

• Second Lien Program: Two Case Examples
• Second Lien Program Fact Sheet
• Fact Sheet
• Summary of Guidelines
• Modification Program Guidelines