U.S. New Plan for Homeowners who can't afford to stay in homes, help with moving and short sales

The Treasury Department unveiled sweeping rules this week to help financially troubled homeowners who need to sell but cannot get a price high enough to pay off their mortgages. Homeowners will even get $1,500 to help cover their moving costs.The plan is designed to help homeowners who do not have the income or debt levels to qualify for a loan modification under the Obama administration's $75 billion Making Home Affordable program. The plan establishes timelines, a standard process and documents, and cash incentives for participation.

To qualify under the new guidelines:

The property must be the homeowner's principal residence.

The homeowner is delinquent on the mortgage or default looks likely.

The loan was made before Jan. 1 this year and is less than $729,750.

The borrowers' total monthly mortgage payment exceeds 31 percent of their before-tax income.

Comments

[Kenneth Diaz]

This is a great program for those still holding on. But there should be some help for the thousands of people who have already lost their homes this past year.