Kelly is on the beat:
The plan announced in February was initially offered to homeowners whose mortgages were worth 105 percent of their homes’ current value.
Now the option to refinance will be extended to homeowners who are even further underwater.
Today, HUD Secretary Shaun Donovan announced in Las Vegas that the plan will expand to include those 125 percent underwater on their mortgage but still current on their payments.
More than 30 percent of all homeowners in San Diego County who have mortgages are underwater. Note: We’re not talking about the loan modification, payment-reducing part of the federal Making Home Affordable program here, but the option to refinance the loans if you’re underwater.
There is a catch: The borrowers’ loans must be owned or guaranteed by Fannie Mae and Freddie Mac. Both agencies have loan lookup programs (Fannie Mae and Freddie Mac) to determine whether you qualify. I’m checking to find out what other restrictions might apply to the refinancing program and I’ll let you know what I hear.