Making Home Affordable Myth's

Myth #1

Everybody can qualify for a loan adjustment – irrespective of their ability to pay their active mortgage or their past pay history.

Truth:

Loan adjustments are designed to prevent foreclosure for homeowners who are in default or are in impending risk of default. If you qualify for a refinance today, you will NOT qualify for a loan adjustment. There are precise, rigorous guidelines you must meet in order to qualify for a loan adjustment under the program. A borrower must show financial hardship due to job loss, change in income, climbing debts, adjusting rate of interest, etc. An legal document must be signed evidencing you are able to no longer afford your mortgage loan payment.

Myth #2

The government is able to drive interest rates lower in the future to help all borrowers.

Truth:

The government has been attempting to drive interest rates down for the past 3 months. Although the Federal Reserve has been continually lowering the Fed Funds rate, this action by the government cannot entirely control the markets that decide mortgage interest rates. Rates will go upward or downward on a day by day basis without any warning. What we do recognize now is that mortgage interest rates are historically low and homeowners are wise not to wait.

Myth #3

The refinance plan will furnish added relief for those who can qualify for a refinance now.

Truth:

This program addresses the needs of those who presently cannot qualify for a refinance under conventional guidelines, since they either do not have adequate equity or because of a credit problems. If you already qualify for a refinance under conventional guidelines, there is nothing in the plan that is of additional benefit to you. Nonetheless, if you cannot qualify under conventional guidelines because your loan-to-value is in the 97-105% range, or because of a bad credit, this plan might assist you in refinancing.

Myth #4

Mortgage lenders will be able to promptly alter or refinance home mortgage loans; it is essential that you work with your mortgage lender to refinance.

Truth:

There has been a ton of consolidation in the mortgage industry, and numerous large mortgage lenders do not have the ability to handle the flood of applications they are receiving.