Focus On Home: Local News
Federal mortgage relief plan will help millions keep homes
by Kristin Nelson, KY3 News
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Story Updated: Mar 26, 2009
"I'm kind of a homebody. I love to come home and play with my horses," said Hogan.
It's really the only hobby he has. Like a lot of Americans, Hogan works two jobs so he can provide for his kids and pay the bills, including a hefty mortgage.
"It's hard to come up with that payment every month after month and it's close to $1,000 and I'd just like to get it back down to where it was at one time, that I could afford.," Hogan said.
A year ago, Hogan's monthly mortgage was roughly $600. When he divorced, he had to refinance his home.
"I had to pay out some equity, so I ended up with about $400 more in my house payment than what I previously had," said Hogan.
According to his real estate agent, Hogan qualifies for President Barack Obama's modification plan because his loan originated before January of this year.
The president's "Making Home Affordable" plan aims to help people keep their homes in two parts, loan refinance and loan modification. The federal government estimates this plan could help up to nine million Americans fight off foreclosure.
Hogan qualifies for the first part of the plan. He's struggling to make payments and even fell behind a time or two. Also, his monthly mortgage payment is more than 31 percent of his gross monthly income.
"People shouldn't be paying more than a third of their income into any house and this effectively is helping people get down to where they're at a third of their income," said Todd Thomas of Eagle Management & Realty 1.
Hogan will not qualify for the second part of the president's plan to refinance mortgages because he fell behind on his mortgage payments, and owners need to be current. Also, owners cannot owe more than 105 percent of the value of their property.
Credit counselors say the plan will help a lot of people.
"This gives us an opportunity to work with borrowers who we know will become delinquent. It's more proactive than reactive and I think there's going to be a lot of interest in it," said Tonya Collister of Consumer Credit Counseling of Springfield.
For Hogan, the modification plan would lower his payment by a few percentage points, knocking off a couple hundred bucks every month.
"And that's a large amount of money. It really adds up," said Thomas.
"If my interest rate and payment were lower, I'd feel like I'd have that breathing room," said Hogan.
So until he can get a lower interest rate, Hogan and his horses will ride out these tough times together.
To learn more about the president's mortgage relief plan, Making Home Affordable, click here.
wow says ...
On Friday, Jul 10 at 8:28 PM
I know this is old but really amazed at how rude and hurtful people can be and then not even be stand up enough to put a name or user name just Anonymous. Guess some can't Read the story... how many times does it have to be said, he works to pay it he isn't asking you all for money if he qaulifies for a goverment program to help him out then more power to him. I don't even know this guy but at least he working and not asking for handouts.