On Wednesday, February 18, 2009, President Obama announced his new Homeowner Affordability and Stability Plan to help troubled homeowners avoid foreclosure. This plan will offer assistance up to 9 million homeowners and applies only to primary residences. The first component of the plan allows homeowners who are current to refinance an existing Fannie Mae or Freddie Mac conforming loan with a loan-to-value ratio up to 105 percent. The second component addresses homeowners who are at risk of foreclosure on their mortgages, but they do not have to be delinquent. The government will work with the lenders to ensure that monthly mortgages do not exceed 31 percent debt-to-income ratio. Furthermore, the government will seek to create clear and consistent guidelines for loan modifications.
The details of the Homeowner Affordability and Stability Plan were released on Wednesday, March 4, with the introduction of the Making Home Affordable plan. Please look at the appropriate charts below to read about the summary of these new programs.
Click here for more information about the Making Home Affordable Program. In general, the loan modification programs on the chart (see link below) and consumer information sheets (see links below) are intended for primary residences only.
Click here for a Lender Comparison Chart 
(3/24/09) on existing mortgage workout programs (revised 3/24/09). The chart is a compilation of programs offered by the larger lenders and government entities. If a specific lender or loan servicer is not on the chart, homeowners may wish to contact the lender or loan servicer to determine if a workout program is available.
All Information provided courtesy of www.car.org. Please discuss all options and situation with your attorney and/or tax accountant as the opinions available on this website are not applicable to every situation. This is not to be considered advise, we are only sharing public information on the subject matter.
