Tonight on the John Hancock show, Jon Wilson and I started talking about the various programs available to help struggling homeowners make their mortgage payments. Here's a rundown of those programs and others:
Cost: $1 Billlion
Starts: September, 2010
Details: Homeowners late on their mortgage payments – but had a perfect payment history – and now find themselves unemployed will be eligible to receive a loan of up to $50,000 to cover mortgage payments. Full details will arrive in September
Cost: $2.1 billion to 10 states (North Carolina: $159 million)
Amount: $24,000 over 24 months in 50 counties, $36,000 over 36 months in 50 counties with highest unemployment rates
Starts: Available Now
Details: This program has been available through the North Carolina Finance Agency since the Pillowtex plant closings in North Carolina. Expected to help 7200 homeowners, this program will allow applicants to receive money for payments for either 24 or 36 months if they meet the program's requirements. An additional $2 billion was just added to this program, of which NC is expected to receive an additional $120 million and South Carolina $58 million.
Amount: depending on the loan
Details: Homeowners making their payments currently that do not have a FHA loan can refinance to a FHA loan so long as the current mortgage holder will reduce the principal balance by at least 10%. More details.
Homeowners facing a possible foreclosure or loss of income should visit Making Home Affordable for more programs