On Wednesday, March 4th the Obama Administration announced the “Making Home Affordable Plan”. The plan is intended to help those Americans who need relief with their mortgages in our currently unsettled economy. This program has received ample coverage in the media, and it is understandable that our members might have questions as to how this might impact them.
Unfortunately, this plan will be of little to no benefit to the residents of California (and our members) due to the following components of the plan:
- The plan is limited to mortgages that DO NOT EXCEED a loan-to-value ratio of 105%, meaning the loan amount can not be more than 105% of the value of the home. California is one of the states hardest hit by declining property values – and most homeowners will not meet this requirement.
- Mortgages that are currently delinquent do not qualify. The program does not assist homeowners that are behind on their payments or who are already in foreclosure.
- Homeowners must be unable to afford their current payments because of a change in income or expenses. It is understandable that people will desire to benefit from this mortgage relief plan – but it will not be available to those who can meet their current mortgage obligations.
SF Fire Credit Union understands that circumstances can arise that may cause members to fall behind on their monthly mortgage payments, and encourages those individuals to contact us to see what options might be available to get them through their financial difficulties.