Obama’s mortgage plan now has a website to explain the refinancing and loan modification assistance in this convoluted plan. The website called Makinghomeaffordable.gov gets reviewed here, not the efficacy of the plan itself.

Makinghomeaffordable.gov Reviewed

First I’m not sure why the government picked this domain name. Doesn’t it make more sense if you like these words to make the word “home” plural so the domain would be Makinghomesaffordable.gov?

At least they bought both domain names so searches can find the website at both names, but then that brings into question, why they are promoting the “confusing” version?

Of course, it’s a clunky name anyway. Why not name it, ObamaMortgagePlan.gov? They would get a ton more visitors that way. Plus it wouldn’t be easy to copy or spoof and it clear defines the site.

Oh well…enough on the domain name.

So what assistance in understanding this complex plan is available on the website?

The site helps folks with Refinancing and Modification…the two main sections of Makinghomeaffordable.gov.

Inside each of these sections are questionnaires to help you determine if you are eligible for each program

The refinance questions are:

1. Are you the owner of a one- to four-unit home? Yes No

2. Do you have a loan owned or guaranteed by Fannie Mae or Freddie Mac?
If you don’t know, click here. Yes No

3. Are you current on your mortgage payments?
“Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months. Yes No

4. Do you believe that the amount you owe on your first mortgage is about the same or less than the current value of your house? Yes No

Answering “Yes” to all forwards you to a checklist(see below) and you are instructed to call your servicer.

CHECKLIST

Information about your mortgage, such as your monthly mortgage statement and
Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
Your most recent income tax return.
Information about any second mortgage or home equity line of credit on the house.
Account balances and minimum monthly payments due on all of your credit cards.
Account balances and monthly payments on all your other debts such as student loans and car loans

The loan modification questions are:

1. Is your home your primary residence? Yes No

2. Is the amount you owe on your first mortgage equal to or less than $729,750? Yes No

3. Are you having trouble paying your mortgage?
For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)? Yes No

4. Did you get your current mortgage before January 1, 2009? Yes No

5. Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) more than 31% of your current gross income?
Note: if you are uncertain, click here to determine Yes No

If you answer “Yes” to all, then you simply get a checklist (see below) and told to contact your servicer.

CHECKLIST

Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources.
Your most recent income tax return.
Information about your savings and other assets
Information about your first mortgage, such as your monthly mortgage statement.
Information about any second mortgage or home equity line of credit on the house.
Account balances and minimum monthly payments due on all of your credit cards.
Account balances and monthly payments on all your other debts such as student loans and car loans.
A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable.

This website is better than nothing, but not by much. A checklist…is that all the Obama administration could come up with to help those devastated by foreclosure or the prospect of foreclosure?

They also promote the Hope Now toll free number and their service, which is no service at all. I wrote about the failures of this Hope Now Alliance government program rolled out under the Bush administration.

I think this website offers little real help, especially if you have a subprime mortgage and the majority of those needing loan modification help are subprime borrowers. If you fall in this category, read my article
Obama Housing Plan - More of the Same for Subprime Borrowers to see how the government plan is just woefully under delivering.

Good Luck!

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