(NAPSA)—There may be good news for homeowners who are struggling to pay their monthly mortgage or who are already behind on their payments. Many struggling borrowers maybe eligible for a modification under the Obama administration’s Making Home Affordable program. Although several conditions must be met, the program presents the most aggressive loan restructuring optionsto date. Here are some answersto frequently asked questions about the HomeAffordable Modification program courtesy of mortgage investor Freddie Mac: Are all mortgage loanseligible for modification? While millions of troubled borrowers are expected to qualify for Home Affordable Modifications, there are somerestrictions. You must own and currently occupy the property, so real estate investors and some owners of vacation properties will not be eligible. Your mortgage must also have been originated on or before January 1, 2009. I heard you need to know who owns your loan. How do you find out? Your mortgage loan must be owned or guaranteed by Freddie Mac or Fannie Maeor anotherparticipating financial services firm in order to participate in the Home Affordable Modification program. To determine who ownsyour loan, use the online lookup tools at www. MakingHomeAffordable.gov or ask your mortgage loan servicer. Your loan servicer is the company that collects and processes your monthly mortgage payments. You can find the phone number on your monthly mortgage bill or coupon book. Can you qualify if you’re up-to-date on your mortgage payments? Yes, responsible borrowers who are struggling to remain current on their mortgage payments are eligible if they can document they are at risk of imminent default. For example, if your mortgage payment or other expenses have recently increased to a level that is no longer affordable or if you have had or anticipate a significant reduction in your incomedue to job loss, illness or someother financial SVP Ingrid Beckles of Freddie Mac urges homeownersto call their servicer if they’re having trouble paying their mortgage. hardship, you maybeeligible. How do I apply for a Home Affordable Modification? Call your servicer and ask for a modification specialist. Be prepared to provide detailed documentation of your income and expenses, as well as evidence of the hardship or change in your circumstances that necessitates a HomeAffordable Modification. What if I have a home equity loan or line of credit? Up to 50 percent of at-risk mortgages have secondliens, and many properties in foreclosure have more than one lien. Fortunately, the Making Home Affordable Second Lien Program is addressing the needs of these troubled borrowers by helping participating servicers reduce payments as part of a Home Affordable Modification. Ingrid Beckles, SVP of Default Asset Management at Freddie Mac, tells borrowers to be persistent in their follow-through with their loan servicer. “The modification process can take several weeks to complete, depending on your individual circumstances.” The good news about the Home Affordable Modification is that your monthly mortgage payments, including taxes, insurance and homeowner association dues, may be reducedto aslittle as 31 percent of your gross (pretax) monthly income. That guarantees an affordable monthly housing payment now and in the future. To learn more,visit the Website at www.MakingHomeAffordable.gov.
