by Lynn Nadler

Just when homeowners thought the "bailout" was not going to be any help for them, the government and banks have come up with a solution that will help at least some of them.  The new guidelines are as follows:

  • The homeowner must be at least 3 months behind in their mortgage payments
  • The homeowner must owe at least 90% of what the home is worth
  • The home must be the homeowner's primary residence
  • The homeowner must not be in bankruptcy
  • The homeowner must be able to prove that they are not trying to get out of their mortgage.

For those who fit the above criteria, the ones most likely to qualify for this new program and, therefore, benefit are those who:

  • Have decent income
  • Borrowers who badger the bank
  • Homeowners who have their paperwork in order and are able to prove income, payment information and their home's value

For those who do qualify, the banks will agree to either lower the interest rate on their current loan or extend the life of the loan, thereby lowering the monthly payment.  although the government and banks admit that many won't qualify for relief under the new guidelines, it is at least a start for the millions who are struggling to keep their homes.