Obama's new mortgage plan

[gsam0]

Hello,

I discovered this website today with a google search. Since then, I have been going through various stories and really started to feel the pain millions are going through every day.

Here is my story and I was hoping to get some help.

I purchased my house in 2004 for $620k in California. 0 down. I had 2 loans (1st and 2nd). I went through a refinance in 2005 and as of today, My first loan is $556,000 with citi mortgage. Its a 7/1 ARM @ 5% interest only. Thats the only way I could afford it.
Second Loan is paid off completely.

Currently I do not have any hardship and I am current on payments. My wife and I both are working. My rate does not adjusts until 2012 (have 3 more years).. but I know when that time comes - I will be in trouble when the rate starts to adjust..

I was hoping to do something about my situation with the new plan Mr. President came out with. Borrowers who owe up to 5 percent more than their home is worth can qualify.
I think if I were to sell my home today I will be selling it for close to $530k. Will I be eligible for Refi or loan modification under Obama's plan.

Please advise.

thanks

[Moe Bedard]

Hi gsam0,


Welcome to the forum and thank you for joining...............

The refi program is for the loans that are backed by FannieMae or FreddieMac...........at the time of your refi...........the loan limit on the conventional loans was 417K.......so that may not be an option.......

The criteria for the modification is here is this link............you can look it over and see if you might fit that program instead............
http://www.treas.gov/press/releases/...guidelines.pdf



CitiMortgage contact for LoanSafe members..........
1-866-255-3901

[abbigail]

I'm glad you guys posted that information. There's a lot on the internet but it's not all correct.

It is complicated. When I was looking over it I didn't understand the part about the Government allowing the banks to decide which ones go to foreclosure. If they will lose less money to foreclose on it. I admit I really don't understand how it all works.

Since there are so many houses for sale here and the prices are all over the place, how will they determine that. A house sold across the street from me in Dec. for $220,000, I think it has an extra bedroom than mine. Then the one next to it a bit smaller than mine I think sold for about $150,000 or so.

My house is in a good neighborhood, meaning a mile or less to the schools, library, the interstate,etc. It's not fancy and not gated. The home owners is low under $15 a month. When I bought it the price wasn't high after I put my money into it. The refinance (believing I'd lose it if the mortgage company failed) that's what hurt. I could still afford it though until the job loss set me back.

If it says they can determine which ones are foreclosed (I guess that's part of their job anyway so they keep afloat) and the prices are all over what's the guidelines for that?
Also, it said the states are getting money to buy houses that are foreclosed? That doesn't sound good. I live in Florida.

[Dan Bailey]

abbigail,
basically, if you are on a path with a modification at this point, continue with that path. The plan will only help very few and specific cases.
The language is vague and meant to keep the ball in the lenders court. What we have posted (guidelines, Q&A, etc...) is all that is known.

[abbigail]

Thanks Dan. That makes sense.