Help Outlined for Arizona Homeowners


You’ve read the news and you’re wading thru the various media outlets to make sense of the plan. If you are one of the thousands of Arizona Home Owners struggling to keep your home you may see some relief. With reduced property values in the Phoenix/Scottsdale many homes are under water, or have negative equity has previously ruled out refinancing. This new government plan aims to reduce payments and prevent looming foreclosures for struggling Phoenix and Scottsdale borrowers

* Borrowers must represent that they do not have sufficient liquid assets to make their monthly mortgage payments. These assets will not include retirement accounts.
* Every borrower who seeks a modification must be screened for financial hardship. Borrowers must demonstrate a change in circumstances that causes hardship, such as a drop in income or an imminent payment increase.
* Delinquency is not a requirement, and households that are at imminent risk of default are eligible.
* Borrowers with high total debt may qualify but only after they enter government-certified debt counseling.
* The mortgage to be modified must have been originated on or before Jan. 1, 2009, and homes must be owner-occupied, 1-4 unit family dwellings that are primary residences
Loans must have unpaid principal balance up to $729,750 for a single-family home, $934,200 for a two-unit home, $1.129 million for a three-unit home, and $1.403 million for a four-unit home.
* New applications for the program will be accepted until Dec. 31, 2012. There is no borrower cost to obtain a modification.
* There is no minimum or maximum loan-to-value ratio.
* Borrowers in bankruptcy are not automatically eliminated from consideration for modification, and borrowers in litigation regarding their mortgage can qualify for a modification without waiving their legal rights.
* Foreclosure actions are temporarily suspended while borrowers are considered for foreclosure prevention options. Loans can only be modified once under the program.
* Eligibility for the program will sunset at the end of three years.