The Federal Government Finally Does Something Right
Posted in General information on May 1st, 2009 by admin – Be the first to commentI am sure that you would agree with me. When the Federal Government gets involved in something, it turns into a mess. Instead of getting easy, it really gets complicated.
That’s why I was totally surprised when I looked at the website for the Making Home Affordable Program which the Obama Administration announced in March. If you are not familiar with it, one aspect of this program, the Home Affordable Modification program, is designed to help people facing foreclosure save their homes.
They have set up a website to help people. It is www.makinghomeaffordable.gov.
When I went to this website, I found some stuff that blew my mind. Go to www.makinghomeaffordable.gov/modification_eligibility.html. You will see an easy 5 point checklist to see if you are eligible for modification to your mortgage. This is one of the simplest forms that I have ever seen.
What really astounded me was the Payment Reduction Calculator. This is at www.makinghomeaffordable.gov/payment_reduction_estimator.html. Here you enter your current monthly mortgage payment and then your gross monthly income. It will tell you what your new monthly mortgage payment will be if you qualify and how much you will save.
The most difficult part here is calculating your current monthly mortgage payment. That includes your principal and interest payment, taxes, insurance and home owner’s association dues. If you already escrow for taxes and insurance, you just take your total payment and add in any monthly association dues you pay.
If you don’t escrow, take your annual real estate taxes and divide those by 12. Do the same with the annual premium for your home owner’s insurance. Add both figures to your current monthly payment along with any association dues you pay.
If you don’t know what your gross monthly income is, look at your W-2 form for 2008. Check the total in the Wages Box and the Social Security Box. Pick the highest one. Divide that by 12.
Check this out today. I am sure that you will be as surprised as I was. I just wonder why the government can’t make things this simple on a regular basis.
Much Success,
Mark Elkins
