ECONOMIC SURVIVAL GUIDE
In these tough economic times, we offer readers a survival guide, in the form of brief artciles to help them cope.
OVERVIEW Not all tips are helpful
JOB LOSS Unemployment benefits
MEDICATION How to get prescription help
COBRA Getting on COBRA
HEATING AID Help with heat
MORTGAGE HELP Ways to stay in your home
FOOD Food services: Do you qualify?
UTILITIES Help with utility bills
TRANSPORTATION Bus, train info
CLOTHING Good clothing for e few dollars
Much has been written about the opportunities being provided to help stop foreclosure actions against homeowners. But what about homeowners who are still current on their mortgage payments, but have lost a job or seen their income drop? Two federal plans are in place: one provides incentives to lenders to modify the terms of existing loans for homeowners struggling to stay afloat by reducing monthly payments while the other allows Fannie Mae and Freddie Mac to refinance mortgages they own or guarantee.

The Making Home Affordable plan provides incentives to mortgage lenders to refinance or modify loans to reduce monthly payments and is designed to help up to nine million families avoid foreclosure.

To find out if your loan is owned by Fannie Mae, call 1-800-7FANNIE, 8 a.m. to 8 p.m. or visit www.fanniemae.com/loanlookup. For Freddie Mac, call 1-800-FREDDIE, 8 a.m. to 8 p.m. or visit www.freddiemac.com/mymortgage.

To apply, call your mortgage servicer or lender, whose number is on your monthly mortgage bill or coupon book. What you will need before you call:

  • information about the pre-tax monthly income of all borrowers on your loan. That includes recent pay stubs;
  • your most recent income tax return;
  • information on any second mortgage;
  • account balances and minimum monthly payments due on all of your credit cards;
  • account balances and monthly payments on all other debts, such as student loans
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    and car loans.

Participation by loan servicers is voluntary; call your servicer to find out if it is participating.

A list of participating servicers can also be found at www.makinghomeaffordable.gov.

What you will need before you call:

  • information about pre-tax monthly income, recent pay stubs;
  • your most recent income tax return;
  • information about assets;
  • information an any second mortgage;
  • account balances and minimum monthly payments due on all credit cards;
  • account balances and monthly payments on all other debts;
  • a letter describing why your mortgage is unaffordable; what caused your income to be reduced or expenses to be increased.

The Making Home Affordable Web site, www.makinghomeaffordable.gov., suggests working with a HUD-approved housing counselor who can help you decide what options are best, as well as help you make a budget to meet your monthly expenses. There is no charge to work with a HUD-approved counseling agency.

GENEVIEVE REILLY