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Updated: Wednesday, 25 Mar 2009, 12:15 PM EDT
Published : Tuesday, 24 Mar 2009, 4:32 PM EDT
LAFAYETTE, Ind. (WLFI) - Last month, President Barack Obama announced the Homeowner Affordability and Stability Plan. It's designed to help save local neighborhoods across the country.
Local bankers are still learning about the program, but one
rough estimate given by Lafayette Savings Bank President Randolph
Williams is that a little more than 2,000 households in Tippecanoe
County may qualify.
The program is specifically for homeowners who financed their mortgages through Fannie Mae or Freddie Mac. Lafayette Savings Bank Vice President of Residential Lending Mary Ann Lee said the federal plan gives homeowners two options. One is to refinance and get a lower interest rate.
"A customer who is current on their loan, they haven't had a late payment in the last 30 days, yet they have not been able to take advantage of refinancing," Lee said.
The other option is to revise the terms of the loan to help people who've fallen behind on their mortgage payments.
"The other group is a group that may be struggling today to make that payment. They might benefit from the modification part of this initiative," said Lee.
Lee said the plan could help homeowners with mortgages from $70,000 and higher.
"We could have made loans up to $417,000. So, that could be a wide range in our community," said Lee.
Homeowners who've already lost their property do not qualify.
"Unfortunately, it's a program to allow us to help folks avoid foreclosure. So, it's not going to help folks who have already been foreclosed. But, the whole goal is to help stabilize neighborhoods," said Lee.
Lee warns families not to pay money for refinancing help. She said information is available for free.
"Makinghomeaffordable.gov is a place I would always start. It
allows one to determine if they might be eligible," Lee said.
Another free website to visit to find out if you qualify for
this homeowner help is at Lafayette Savings Bank. Lee
said there is also an online application at www.lsbank.com.
For those who would like to call the national hotline, dial (888) 995-HOPE (4673).
Lee said it's also good to contact the bank that your mortgage is with first.
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