A lot of interest has been bubbling up about the $750 billion dollars that the Obama Administration has earmarked for loan modifications for borrowers who are under water on their home values. And, lots of homeowners around Atlanta are underwater, so it affects a lot of us.

The way it works is that it is a true loan modification, not a refinance.  And those eligible are those who are current on their mortgages, but owe more of the home than the home is worth, AND the mortgage is owned by either Fannie Mae or Freddie Mac.

That’s where most people stop.  ”How do I know if my mortgage is owned by Fannie or Freddie?”  Well, now it has been made simple.  You can look it up online or by a simple phone call.

Fannie Mae has set up this website to check if your mortgage is owned by Fannie.

And, to check with Freddie Mac, just call 1-800-Freddie, and press option 5, then option 4.  Then ask.

If the answer is positive, then you can contact your current servicer to ask them to begin the process of modifying your mortgage.

Good luck!

In Georgia we have been seeing record numbers of foreclosures, record numbers of bank repos and record numbers of short sales.  There may be some in your neighborhood. Homeowners are faced with rising mortgage payments once their low adjustable rate mortgages begin to climb.  The common answer up to this point to avoid foreclosure has been the short sale.

But what if the homeowner is in the right home; just in the wrong mortgage? (more…)