Contrary to what the news is reporting we are still not out of the woods with this economic crisis. People still need jobs and home owners are still struggling to keep their heads above water. Back in March, the Obama Administration announced new initiatives to aid homeowners. The program enhancement is aimed at supporting homeowners that are behind in their mortgages due to unemployment and borrowers who owe more on their house than it is worth.
Look below to see if you are eligible:
If you are unemployed or have a reduction in income you may qualify for a mortgage payment reduction:
The company servicing your mortgage will be required to offer at least three, and up to six, months of reduced payments.
During that time, you won’t have to pay more than 31 percent of your monthly income toward the mortgage.
You have to live in the home to qualify.
The mortgage balance has to be less than $729,750, with a monthly payment that represents more than 31 percent of the gross monthly income of all borrowers who signed your mortgage, before you subtract anything for taxes or deductions.
If one person in the household works and one is unemployed, you will not be eligible if the loan payment is under 31 percent of your current total household income.