Getting Mortgage Help

That's the date when the program is scheduled to end.The closing date is just one of many specific details about the federal refinance program that homeowners will have to wade through as they seek help.

A good place to start for information is the government's Making Home Affordable Web site. It has a page answering commonly asked questions about the refinance program (as well as the loan modification program for owners who are at imminent risk of losing their homes).

That page is at http://

makinghomeaffordable.gov/borrower-faqs.html#4.

In general, owners must meet the following criteria to qualify for the refinance program:

You are the owner-occupant of a one- to four-unit home.

The loan on your property is owned or guaranteed by Fannie Mae or Freddie Mac.

At the time you apply, you are current on your mortgage payments.

The amount you owe on your first lien mortgage does not exceed 125 percent of the current market value of your property.

The government Web site can help owners determine whether their loan is backed by Freddie or Fannie, and has a list of lenders that are participating in the refinance program.

Actually getting through to your lender may take some patience.

G. Scott Haislet, a tax attorney and CPA in Lafayette, advises his clients to “fasten your seat belts, because you're going to call 800 times and you're going to get frustrated.”

Lisa Baskfield, a Minneapolis-based member of the National CPA Financial Literacy Commission, said lenders likely will ask for copies of tax returns, pay stubs and other financial information, just as they would for any refinancing request.

“They're going to say, ‘We want to make you a loan based on your ability to pay. We want to see where you are at,'” Baskfield said.

Haislet cautions clients who are behind on their mortgage payments to be careful about revealing details of their finances to lenders, because that information can sometimes be used against borrowers in foreclosure proceedings or in other circumstances.

For borrowers who are not in arrears and are simply seeking to restructure their loans, Baskfield said she sees no downside to trying.

“If you are eligible for the refinance program, in my opinion, you have nothing to lose,” she said.

Haislet said borrowers should consult with a financial adviser or attorney before they agree to any changes to their mortgages, as those changes could result in tax penalties, credit dings or other unforeseen drawbacks.

The California Human Development Corporation in Santa Rosa offers mortgage advice. Call 523-1155 and ask for a Housing and Urban Development counselor.

Catholic Charities offers a similar program. Call 575-0215.

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