Some key points on Obama’s foreclosure-prevention plan:
- Loan terms may be modified by reducing payments for distressed borrowers
- Refinancing for those current on payments, but have little or no equity in their home
- Plan starts right away and is strictly for primary residences that are not vacant or condemned
- Call your loan servicer for help to see if you qualify
- There are no fees for this type of loan modification
- To be eligible, your loan must be owned or guaranteed by a government-backed mortgage company such as Fannie Mae or Freddie Mac
- Modification plan ends on December 31st of 2012
- Loans can be modified one time only
More information is available at financialstability.gov