On March 24th 2009, the Obama Administration released detailed guidelines for homeowners to help them determine if they qualify for the new MAKING HOME AFFORDABLE PLAN.

The Plan has two primary goals:

1. To help homeowners in existing Fannie Mae or Freddie Mac loans that are current on their mortgage payments to refinance and take advantage of today's interest rates.  This is for homeowners who have lost appreciation in their home due to the decline in home prices, but still have equity in their home, just not the required percentage to get a refinance, under this plan, Fannie and Freddie will allowed to refinance qualified homeowners up to 105% loan-to-value of the current value of the home.

2. To help homeowners who are at risk of foreclosure.  The administration is offering government assistance to loan servicers and investors to help offset the cost of modifying qualified homeowners into affordable mortgages.  This may be done by reduing the mortgage interest rate, extending the term of the loan, principal forberance, and/or principal cramdown.  This program is voluntary and the Loan Servicers or Investors (who you make the mortgage payments to) must agree to contract with the Treasury to participate.

The key words here are: QUALIFIED HOMEOWNERS AND 105% LOAN TO VALUE OF THE CURRENT VALUE OF THE HOME.

BEWARE OF FORECLOSURE RESCUE SCAMS. There should never be a fee charged for information or assistance regarding this program.

Beware of anyone who says they can SAVE your home if you sign or transfer over the deed to your home.  DO NOT sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.

Never make your mortgage payment to anyone other than your mortgage company without their approval.