Dec
02
Help For Upside-Down Homeowners
ByUpside-down homeowners get some help!
The Treasury Department unveiled sweeping rules this week to help financially troubled homeowners who need to sell but cannot get a price high enough to pay off their mortgages. Homeowners will even get $1,500 to help cover their moving costs.
The plan is designed to help homeowners who do not have the income or debt levels to qualify for a loan modification under the administration’s $75 billion Making Home Affordable program. The plan establishes timelines, a standard process and documents, and cash incentives for participation.
To qualify under the new guidelines:
The property must be the homeowner’s principal residence.
The homeowner is delinquent on the mortgage or default looks likely.
The loan was made before Jan. 1 this year and is less than $729,750.
The borrowers’ total monthly mortgage payment exceeds 31 percent of their before-tax income.
