New plan for Homeowner relief

With all that has happened recently in the housing market, it is nice to know that there may be some relief on the way. The Washington Post has a great article up about the most recent homeowner relief program. The Washington Post requires membership to read its articles. Membership is free and only takes a couple seconds.

The Obama administration yesterday sketched in the details of its most ambitious attempt to reduce foreclosures and stabilize the beleaguered housing market at the root of the economic meltdown. Read the Washington Post article

There is an interactive quiz in the article that you can take to see if you qualify for the program. The article goes on to say —

The loan-modification program is limited to loans issued on or before Jan. 1, 2009. It expires in 2012. Under the program, lenders that modify troubled loans are eligible for thousands of dollars in incentive payments, including bonuses for reaching homeowners before they become delinquent. The government will also help subsidize the cost of lowering the borrower’s interest rate so that payments are no more than 31 percent of their income. A loan can be modified only once under the program, and borrowers must prove they have a financial hardship.