Conventional – Non-Conventional – VA - FHA

Dear Clients and Business Partners:
In an effort to address the foreclosure crisis, the Obama administration announced Wednesday, February 18th, some details about Obama’s Foreclosure –Prevention program, intended to provide incentives for lenders to ease mortgage payments for struggling borrowers. Details are still forthcoming as the final plan is still in flux.
Key Components of Obama Plan and Who it Will Help:
· Homeowners who are behind in their payments or in foreclosure proceedings
· Homeowners still current on their home loan but with a high debt-to-income ratio
· Homeowners whose mortgages are held by an investor other than Fannie Mae and Freddie Mac (Jumbo non-conforming lenders, private money lenders or portfolio lenders) that would agree to modify the loan in exchange for government subsidies
· Homeowners whose mortgages are worth between 80% and 105% of their homes’ value, which currently makes it difficult to refinance a loan
· Homeowners whose loans are either held by or guaranteed by Fannie and Freddie
· Other criteria, possibly relating to debt-to-income ratios that are still under discussion
Who Misses Out:
· People who have already lost their houses
· People with mortgages on vacation homes or investment properties