The Treasury Department released their details today regarding the Homeowner Affordability and Stability Plan. There are a few different versions of the plan depending on the borrower’s situation. The abbreviated version is that you need to call your lender to find out about your own personal eligibility. However, here are some of the basic eligibility requirements (taken directly from the Treasury Department’s summary):
- Loans originated on or before January 1, 2009.
- First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750. Higher limits allowed for owner-occupied properties with 2-4 units.
- All borrowers must fully document income, including signed IRS 4506-T, two most recent pay stubs, and most recent tax return, and must sign an affidavit of financial hardship.
- Property owner occupancy status will be verified through borrower credit report and other documentation; no investor-owned, vacant, or condemned properties.
- Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments when the servicer determines that the borrower is at imminent risk of default.
- Modifications can start from now until December 31, 2012; loans can be modified only once under the program.
To find out if you qualify, you’ll have to call your lender and supply them with your income, debt and asset information. For more information about the plan itself, check out the following links from the Treasury Department:
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