Who Qualifies for Relief?
Despite the fact that approximately half of the mortgages in South Florida are underwater, not all homebuyers affected will qualify for the relief that has been granted by the $25 billion-dollar Federal/State settlement.
So how do you know if your loan qualifies? If you took out a loan with Bank of America, Wells Fargo, JP Morgan Chase, CitiGroup, or AllyFinancial, and the loan had mortgage-backed securities, then it might qualify, but there are other stipulations. For example, leading analysts suspect that the relief will be focused on those who can’t afford their bills versus those who can, regardless of the fact that the fallen real estate prices affect everyone in the area. Depending on your unique circumstances, if granted funds from the settlement, your loan might only qualify for a principal reduction or reduced interest rate, but not necessarily both.
Also, if you are one of the majority of Americans who took out a mortgage through Fannie Mae or Freddie Mac, your loan might not be included in those being granted relief. Additionally, if you have taken a severe hit in income, either through a lost job or unexpected medical expenses, you might not qualify. This relief seems to be focused on those who are getting behind or mortgages, but for those who have taken out second mortgages and are behind on property taxes, there might not be much help.
