White House launches mortgage-assistance Web site

The Obama administration today launched the Makinghomeaffordable.gov Web site, where you can get free information on ways to reduce your mortgage payments and keep your home out of foreclosure.

Your first step is to determine whether you're eligible to refinance or modify your loan by filling out and submitting a short questionnaire.

If you are not eligible, you get a "YOU ARE NOT ELIGIBLE FOR A HOME AFFORDABLE REFINANCE" (or modification) message and this explanation:

"The Home Affordable refinance and modification options are designed specifically to allow existing homeowners to keep their homes by making mortgage payments affordable. The plan will not help everyone. For example, it will not help investor borrowers or borrowers who have no income and cannot make any mortgage payment."

If you are eligible, the message reads, "YES, YOU MAY QUALIFY FOR HOME AFFORDABLE REFINANCE" (or modification), and you're presented with a list of information you'll need when you call a mortgage lender.

"While our plan may not save every homeowner in trouble, it will give millions of families a chance to rebuild.  Solving this crisis will require more than resources—it will require each of us to take responsibility, to reach out to our neighbors and offer support and guidance, to engage with the government and work together to find solutions," wrote Stephanie Valencia, of the White House Office of Public Liaison, on the White House Blog.

Essential information: A variety of scammers and foreclosure vultures are targeting distressed homeowners, while foreclosure auctions are front-page news. You'll find advice for dealing with mortgage problems at Defend Your Dollars.org. Also see our tips for buying foreclosed property and choosing a home inspector.

Comments

[karen Mueller]

I have problems paying my mortgage for going on 2 years now.
Its not that I took a loan out I couldn't afford
Its because I had an EXPLOSION caused from a faulty (newer) boiler heating system. A "pressure relief valve failed" buildt up excessive pressure in my radiator system and escaped via the kitchen radiator. (Lucky I had the water turned off because of a leaky kitchen faucet valve under the sink )
I have filed SEVERAL COMPLAINTS with the WISCONSIN INSURANCE COMMISSION. I could not even get that government entity to make
BADGER MUTUAL INSURANCE - give me a copy of my insurance POLICY
It appears some 'supervisior' at the Insurance Commission
Anne Bynes keeps interfering with progress of my complaints
Its been almost a year now - I sent a letter to the CONSUMER PROTECTION AGENCY - they just forwarded my complaint to Anne Bynes where it laped - DEC 27 I had to write a letter telling I could no longer pay my mortgage and couldn't get insurance
Nothing happened
I am now behind on payments and ignored by mortgage holder, insurance comp and commission

[Marcus]

Why does it take these mortgage companies so long to do anything with this Making Homes Affordable program? I sent my information in over a month and a half ago (to a mortgage company under AIG no less) and still nothing. Today I was told by the HUD counselor (I chose to go through a HUD counselor so I would have back up if need be / someone on my side) they will try to call the mortgage company in another two weeks!? TWO WEEKS? WHAT? WHY SO LONG? They have all my paperwork, nice and neat and organized and everything! Why isn't anyone enforcing the timeliness of this program?? Are they waiting to see how far down we can actually get first, when WE HAVE BEEN TRYING TO DO THE RIGHT THING unlike them? I don't know why all the power goes to the unethical STILL! We bail them out, our rates on everything go up (except our pay if we even have jobs), we barely eek by, and these guys, who have run the country in to the ground, STILL GET ALL THE SAY SO?! Something is wrong here - and who regulates the timeliness of this program? Or does anyone? Thank you for listening and maybe one day someone respond with something other than "they're busy" with all these applications. Well they weren't too busy when they wrote all these policies.

[Heather]

The government website (mentioned above) said that I should be eligible for a loan modification. I sent in my documentation to my lender (Nationaly City Mortgage). I waited almost 2 months, then received a letter from my lender saying, basically, that I DON'T MAKE ENOUGH MONEY. Yet, I make the same as I did when the loan was approved- and isn't that the point? My circumstances changed and I don't want to lose my home!
I think the lenders are taking the money and running, and have no intention of helping anyone.

[John]

My family has twice been denied a loan modification, even though, according to the Making Home Affordable web site, we are eligible. The claimed they were just servicers, and the investor is not allowing any modifications. They claimed all they are authorized to do is a 90 day payment moratorium; we could with-hold 90 days of payments, and then would owe the 90 days of back payments plus the current months payment.

However, there is a solution on the table. Congressman Cardoza (CA-18) has introduced legislation, H.R. 230, that would authorize Fannie and Freddie to fund home mortgage loans at the rate of 4%.

This vital legislation has languished in the House Financial Services Committee since its introduction.

This is a win-win scenario-
The lenders would be paid off for the toxic mortgages that they wrote.
Homeowners in crisis would gain some relief.
Consumers with more money in their hands would probably start to spend money again, stimulating the economy.
Qualified folks that might not qualify for home-ownership at higher interest rates might at 4%.

It is also likely that given time and good management, this program would be completely self funding.

Call and/or write your congressperson and tell them you want their support of this legislation. Tell you friends to do the same. Write the newspapers, get the word out about H.R. 230.

[Denver Home Mortgage]

Good so people will not go to this scammed loan modification people. You don't need to pay some one to help you with a loan modification when you can get help from the gov for free!

[Lisa Townsend]

I started calling Countrywide, my lender, back in February when I heard on the news about this help with refinancing and modifying. I was told to call back in March because the had not received "clarification/directions" on how to work with homeowners with PMI. I was told that there are three groups of people and each month a new group would be in line to receive services. When I called back in March, I was told to call back in April because Countrywide--now BOA--is still not assisting homeowners with PMI. I called back in April seeking help, especially now since I had been informed that on June 30th I would be RIF from my job in Arizona as a school principal due to state budget cuts in my very small school district. A sense of urgency took over. I called BOA in May and June and was told to call back the next month. The first week in July I called BOA back and was told that there was nothing they could do to help me because I am NOW unemployed. How could this happen? They repeatedly put me off and now I am in danger of losing my home. I have a small child and unemployment has not even determined if they will assist me monthly with a $245 payment. Is there help anywhere?