CNNMoney reports on the details of the real estate stimulus. In part:
The multipronged fix calls for companies to help as many 4 million
struggling borrowers by modifying loans so housing payments are no more
than 31% of monthly gross income. Separately, homeowners who haven’t
missed a payment can refinance into lower-cost loans even if they have
little or no equity. This is expected to help up to 5 million
There is also additional information at www.hud.gov.
To qualify for loan modification:
have obtained their mortgage before Jan. 1, 2009;
- have a primary mortgage of less than $729,500;
- live in the property;
- fully document their income by providing tax returns and pay stubs;
- sign a statement of financial hardship; and
for counseling if their total household debt – including auto loans,
credit cards and alimony – totals more than 55% of their income.