Here are tentative key points of President Obama’s foreclosure-prevention plan:
- Loan terms may be modified by reducing payments for distressed borrowers
- Refinancing is intended to help owners who are current on payments, but have little or no equity in their home
- Loans can be modified only one time
- To be eligible, your loan must be owned or guaranteed by a government-backed mortgage company such as Fannie Mae or Freddie Mac
- Plan starts immediately and is strictly for primary residences that are not vacant or condemned
- There are no fees for this type of loan modification
- Modification plan ends on December 31, 2012
- Contact your loan servicer for help to see if you qualify
Please consult your Honolulu mortgage professional if you have questions. Contact Michael Zimmerman if you need a referral to a great mortgage advisor.
