There is a lot of chatter about President Obama’s new homeowner mortgage reduction plan. And while it will be helpful to a small number of people, there are some fairly rigid criteria that make it difficult to access for the majority of homeowners who are in trouble.

1. CONTACT:
RE Acquisitions
(800) 824-8122
info@sellhomeowner.com
http://www.sellhomeowner.com

2. There is a lot of chatter about President
Obama’s new homeowner mortgage
reduction plan.
And while it will be helpful to a small number
of people, there are some fairly rigid criteria
that make it difficult to access for the
majority of homeowners who are in trouble.

3. Eligibility requirements for participating in the plan
include:
Only homeowners with loans through Fannie Mae

and Freddie Mac qualify
Borrowers can’t owe more than 105% of the value of

their home
The home must be the primary residence

If a homeowner has a second mortgage, it must

agree to subordinate
The debt ratio can’t be above 31%


4. And even for those who meet these
qualifications, it is still up to the lenders to
choose to participate. This is an optional
program, not a mandatory program.

5. If the first three don’t rule out a borrower, the
last two likely will. Many people who financed
their homes between 2002-2007 took out
80/20 loans. The primary loan was 80% of the
home’s value, then they financed the
remaining 20% with a secondary lender.

6. With these homeowners struggling to make
payments, often close to foreclosure, it is
unlikely that a secondary lender will agree to
subordinate.

7. In essence, agreeing to subordinate means
that they will give the primary loan company
first rights to all money that is generated by
the sale of the home…potentially leaving
them with no income to satisfy the debt

8. The debt ratio of 31% is certainly a solid
measuring stick of a healthy credit rating, but
we are a nation in serious economic trouble.
The average American has taken a huge hit to
their wallet and likely has used credit sources
to stay afloat before getting to this point.

9. By creating such a conservative debt ratio
criteria, the plan again eliminates many of
those in greatest need.

10. However, there are other options for avoiding
foreclosure. “We recommend that
homeowners hire a licensed and bonded
mortgage broker to represent them in
negotiations.” reports a source from RE
Acquisitions.

11. It is easy to let the pressure of today’s
economy build into a feeling of hopelessness.
But before you walk away from your house,
contact a debt negotiations specialist like RE
Acquisitions (www.sellhomeowner.com) for
help.