Can anyone tell me more about the Making Home Affordable Program? Will I qualify? *Read More*?

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I have owned my home for 5 years, refinanced for debt consolidation twice, the last time being in 2005. I technically have an ARM loan that was supposed to adjust over a year ago but due to the failing economy the automatically made my ARM extended with no adjustments until 2014. I am struggling to pay all my bills, however I have not gotten behind on my mortgage payments whatsoever. My DTI is very high and my husband filed bankrupsty on his credit card debt after he lost his job a couple of years ago and went unemployed with no unemployement pay for 6 months. He tried continously to find work and was damn lucky to get the job he has now. In the mean time I had to take a pay cut and a HUGE cost of health insurance increase. Between the two of us we were doing much better financially 5 years ago than we are now even though we planned 5 years ago to have our annual income be double what it actually is thanks to our poor economy. ANYWAY, because of all of this he has crappy credit, I have very high DTI ratio due to student loans and my home is not worth the $ 97,000 we owe on it, I would imagine it would be worth more around $ 80-85k. What is this new program? My mortgage company said it is coming soon and I read over the documents they provided me with but it seems like a lot of jargon. My mortgage is through Wells Fargo. Is what I am hoping for is for them to refi me at a lower monthly payment OR at the very least just make my ARM fixed for minimum 15 more years. What do you think my options are going to be?

1 Comment
  1. Reply
    kcgpulice
    February 2, 2011 at 12:00 am

    One reason I don’t think you would qualify is because you have to owe between 80% to 105% of your home’s value. You owe more than that, sounds like. Read some of the facts sheets here, http://www.financialstability.gov/
    I worked with Wells Fargo too. They are clueless about what this program is. All the counseling numbers I called, they are cluesless too. But if you call your state’s HUD numbers from the MHA website, they may tell you your best options. I learned a lot from a few phone calls.
    I think you can and should refinance with a lower fixed interest rate. And they are low for everyone now. Record lows. You will have to pay about $ 400 for a refinance application. Then the closing costs and everything, if you wish, could be added to your mortgage amount. That could be up to $ 2000. Sounds like a lot, but with a lower rate, you’d be better off.
    If Wells Fargo says they can’t help you, go to your local bank and ask to have a sit down with someone about refinancing. They might help, or at least give you free advice.
    Good luck.

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