Real Estate for Today’s Magalia and Paradise California Home Sellers and Home Buyers

Unemployed homeowners could get a break on their
mortgage payments

In an effort to assist unemployed homeowners in avoiding foreclosure while looking for a job, the Obama administration may be offering some enhancements to its Home Affordable Modification Program (HAMP). The government would set up new guidelines that will force lenders participating in HAMP to offer forbearance.

Forbearance means that the mortgage servicer will defer a borrower’s payments until a later date. The amount deferred could be all or part of one or more payments that are due. Lenders would provide a mortgage forbearance for a period of 3 to 6 months. Homeowners who are unable to find a job during the forbearance time frame may be considered for alternatives to foreclosure, including short sales and deed-in-lieu of foreclosure. However, foreclosure may be inevitable.


At the end of the forbearance period, borrowers who have found jobs, but whose payments are greater than 31 percent of their monthly income, would be considered for a permanent loan modification under HAMP. To receive permanent modification, homeowners must be current on their payments, provide documentation of qualifying income and meet all other HAMP underwriting requirements.

Eligibility criteria for the program are as follows:

• The homeowner must occupy the home
• The loan balance must be below $729,750
• The loan must have originated before January 1, 2009
• Request for assistance must be made during the first 90 days of delinquency
• Borrower must provide documentation that they are receiving unemployment insurance benefits

A date for implementation of this program has yet to be set. If you are unemployed and struggling to make your mortgage payments, it’s suggested that you contact your lender to discuss what assistance options may be available to you.



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For more information, you can visit my Web site or feel free to give me a call.

Tammy Vertrees, Paradise California Realtor

530-413-8383 Direct
530-872-5428 Office

www.TammyVertrees.com

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I specialize in representing sellers and buyers of residential real estate in Paradise, Magalia, Chico, Oroville, Gridley, Biggs, Durham and the surrounding areas.  I provide my clients with a strong level of comfort, powerful negotiation skills and use of the latest technologies.

Visit Tammy Vertrees on the web at www.TammyVertrees.com for real estate information and to view all available Butte County homes for sale.

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