Home Affordable Refinance & Modification Facts
Lifting Homes Out of Economic Danger
The Home Affordable Refinance program is now available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac.
Under the Home Affordable Refinance program, homeowners will be eligible to refinance their loans to take advantage of today's lower mortgage rates or to refinance out of an adjustable-rate mortgage into a more stable mortgage. Click Here for Home Affordable Refinace Faqs.
The Home Affordable Modification Program has been made available to homeowners who are struggling to make their mortgage payments because their interest rate has increased or they have less income.
Under the Home Affordable Modification program, some homeowners may be eligible to modify the terms of their existing mortgages to provide them with more affordable payments and some may even be able to stave off foreclosure.
Taking Advantage of the Plan
Under the President's Home Affordable Plan, your mortgage servicer has a variety of options for qualified borrowers to refinance or modify their mortgages to lower their monthly payments and avoid foreclosure.
Information You Will Need
Before you call your mortgage servicer for help, it would be helpful to gather the following information to facilitate your discussion:
- letters or communications from your lender
- foreclosure notices
- recent mortgage statements showing your loan number
- homeowner's insurance policy
- last two pay stubs and most recent tax return for all borrowers named on the mortgage
- proof of other income, such as child support, alimony, Social Security, or pension
- bank account statements
- a list of major monthly bills, including child care, utilities, credit cards, and cell phone.
You can also call Fannie Mae at 1-800-7FANNIE. If they have your mortgage, they can help you get in touch with your mortgage servicer to get the assistance you need.
Making Your Case
You simply need to demonstrate that a "hardship" makes it difficult for you to meet your current monthly mortgage payments. Individual situations are different and there are no set hardships, however divorce or separation, death of a spouse, loss or reduction of income, illness, military service, and job relocation are all generally considered to be acceptable hardship situations.
The recent decline of property values has added an additional "hardship" because declining values and excessive inventories take away the homeowner's equity and their ability to sell, and many of those seeking to refinance their mortgage loans now find themselves without sufficient equity.
A key component of this process is a persuasive "hardship" letter. The impact of the hardship letter should be such that your lender is able to empathize with you; and understand your situation so they will be accommodating enough to help you with your options. View a Sample Hardship Letter Here
A statement of your individual circumstances along with the inclusion of documented market condition data from your home's market area is sure to illustrate the existence of your "hardship". Valyootrends Market Condition Reports are definately a "Real Affordable Value" to those considering the President's Home Affordable Plan. View a Sample Report Here
As a courtesy, we are making avaiable "generic copies" of the worksheets and authorization forms that are typically needed for the Home Affordable Plan. Individual lenders and/or service providers may require the use of their own forms, but these copies will be helpful to you in your information gathering process. Download the Worksheets Here
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For the Do-It-Yourselfer  |
The Most Comprehensive Step by Step Loan Modification Guide on the Internet Why Spend Money With a "Loan Modification Company" When You Can Do it Yourself! Click Here |
If you have missed or about to miss a mortgage payment due to hardship ... or even if your loan already has been referred to an attorney -- please call your mortgage servicer immediately. The telephone number is on your mortgage bill or coupon book. Counseling & Information If you need advice, you can call your local homeowner or financial counseling agency, or the Homeowner's HOPE Hotline at 1-888-995-HOPE. Experienced counselors can help you develop the best plan for your situation. This counseling is free. For more information, go to the U.S. Department of Treasury web site, MakingHomeAffordable.gov. |
If you wish to discuss your specific needs contact us here.