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Coping in Tough Times: How to get a lower mortgage payment
The Sun Sentinel answers your questions about survivng the economi downturn every Wednesday in Your Money. Use the box at the right to submit your questions.
We have a 10-year mortgage with Citibank and the payments are killing us. Does the government have some sort of modification program where we can lengthen the mortgage and lower the monthly payments?
There is now. The Making Home Affordable program launched March 4 actually gives lenders an incentive to modify loans, bring the interest rate down to as low as 2 percent and to extend the term of the loan for as long as 40 years.
A lender who cuts the monthly payment to 31 percent of the borrower’s gross monthly income potentially can also receive a payment from the Treasury Department to offset that reduction.
The program works for borrowers who are at risk or falling behind on their mortgages as well as those who are up to 60 days delinquent. The guidelines cover mortgages owned by Fannie Mae and Freddie Mac as well as those lenders that are receiving federal bailout money. It applies to loans amounts up to $729,750.
And, it can help lenders refinance loans that are underwater, or slightly higher than the value of the home. So check with your lender.
At least one, Fifth Third Mortgage Company, said it would automatically review more than 200,000 mortgages to see who might be eligible.
Harriet Johnson Brackey, the personal finance writer for the Sun-Sentinel, has been an award-winning business...
Comments
Sell your House in florida and go move someplace else...where your property taxes dont cost more then your HOUSE PAYMENT,STATE OF GREED,FLORIDA.Land of the FATCATS
Posted by: DAS | March 11, 2009 7:58 AM
we figured this out months ago why not keep the people in there homes paying taxes insurance up keep etc.. now its empty and takes the whole area down wake up banks and govt.maybe i need to go to college and get a degree in stupid
Posted by: Joe Mancine | March 11, 2009 8:53 AM
I called Countrywide about this last week and they stated that they don't have the information yet to assist homeowners. They have a posting on their website as well stating the same thing.
Posted by: Frank | March 13, 2009 8:46 AM
I called Countrywide about this last week and they stated that they don't have the information yet to assist homeowners. They have a posting on their website as well stating the same thing.
Posted by: Frank | March 13, 2009 8:48 AM
The press on this program has made it sound like anyone can have their loan modified. The program is actually pretty restrictive. Find all the details on the Obama mortgage plan listed at www.money-rates.com.
Posted by: Chris | March 17, 2009 12:24 PM
I called Countrywide myself and was told that my lender does not want modifications on his/her loans. They waited two months to tell me that, then they took my financials and said they can't help me even though I went out and got a job. Of course, the job does not pay what my business did, but that really doesn't matter to them. My husband called again today and got the same thing.
Unfortunately, I have seen this company sweep through entire neighborhoods with foreclosures years ago.
My loan was sold to them within a month of closing.
Posted by: The Angel | March 20, 2009 2:50 AM
EMC mortgages. i have ask for a loan modification, they explain that they have to put me on a monthly payment plan first to pay the past due and then i can apply for a loan modification. I also ask about the new loan modification plan that Obma puts in place, but they said i cannot follow CNN news or the news paper is this true. i really don't understand. Nothing seem to make sense.
Posted by: Joscelyn Morrison | March 20, 2009 5:18 PM
EMC mortgages. i have ask for a loan modification, they explain that they have to put me on a monthly payment plan first to pay the past due and then i can apply for a loan modification. I also ask about the new loan modification plan that Obma puts in place, but they said i cannot follow CNN news or the news paper is this true. i really don't understand. Nothing seem to make sense.
Posted by: Joscelyn Morrison | March 20, 2009 5:18 PM
I can help just about anyone whose payments are too high, but they want to keep their home with a loan modification.
Posted by: Khalil | March 23, 2009 12:00 AM