What Is the Making Home Affordable Program?:
The Treasury Department
launched the Making Home Affordable Program to help homeowners avoid foreclosure. Treasury also created a new website to help mortgage-holders find out if they qualify for the government's loan modification program. The website, Makinghomeaffordable.gov
, provides an interactive self-assessment tool that also calculates potential reductions in monthly mortgage payments. (Source: U.S. Treasury Dept. Press Release, March 19, 2009)
How the Making Home Affordable Program Works:
This program helps homeowners before they get behind in their payments. Most banks
won't allow a loan modification until the borrower misses three payments. To qualify, your mortgage must be
- Worth more than the home is worth.
- Issued before January 1, 2009.
- Less than $729,750.
If you are eligible, you will have to provide your most recent tax return, two pay stubs, and an "affidavit of financial hardship." The web site also explains what to do if you are not eligible. For more info, go to Makinghomeaffordable.gov