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Zillow Explains Obama’s New Home Loan Modification Plan

Posted on March 11th, 2009 5:02pm by Josh Hixson
Filed under Barack Obama, George Bush home, Real Estate, Wall Street meltdown, foreclosure, gossip, mortgage/refinancing, real estate economics

Many of you probably read the news last week regarding the Obama administration’s plan to come up with a rather aggressive effort to stem the tide of foreclosures. In short it’s a way for homeowners to reduce their monthly payments (not including PMI) to 31% of their pre-tax monthly income. For the full monty visit Zillow’s blog post here that explains the process in detail and even points you to the right documents.

Here are the dirty details on qualifying:

Must have originated mortgage before Jan. 1, 2009.
Be an owner-occupant.
Have an unpaid balance that is equal to or less than $729,750 (for a single-family home).
Have trouble paying your mortgage due to financial hardship.
Your monthly mortgage payment must also be more than 31% of your gross (pre-tax) monthly income. Duh.There’s a three-month trial period before you lock in the lower rate for five years and if your home is in danger of foreclosure the process will be halted while you apply for the program.

2 Comments to “Zillow Explains Obama’s New Home Loan Modification Plan”

jeff pinter @ April 26th, 2009 at 9:10 am

I am glad I had a chance to read your message, if you have more information elsewhere let me know or post it here.
Moe Bedard @ July 11th, 2009 at 8:02 am

This is a good explanation and Zillow does a goiod job. But homeowners need support through the process. There is a support forum at http://www.loansafe.org for people to get loan modification help.