Home JN Community Forum Featured Blogger: OWNERSHi Meet Levi Stein Various Ways To Modify A Loan to Stay Current Bob Pilcowitz Columnist I s there really hope for homeowners? With the recession still plaguing the economy and more than a quar- ter of all homeowners underwater, is there any way out? First, the government agencies Fannie Mae and Freddie Mac provide options that allow homeowners who are current on their mortgages to refinance up to 125 percent of the loan value. While you can try your loan servicer, these loans are expensive and difficult to close; and lenders who do not act as your servicer simply cannot close these loans. Call your loan servicer or even your local lender; but be aware of how difficult this is. Second, the government agency Federal Housing Administration pro- vides a short refinance. Homeowners may be eligible if they live in their house, are current on their mortgage and are currently in a non-FHA loan. The homeowners' banks must agree to write off 10 percent of the principal bal- ance of the loan. While some lenders offer these loans, most FHA lenders are afraid to originate these loans because they have a higher default rate. Again, while some lenders will make these loans, the product is not as easy to get as the government would lead you to believe and there is limited incentive for a noteholder to take a short payoff. Third, you have a do-it-yourself plan as an option. It means you take money to the table in order to refinance your DETROIT JEWISH NEWS loan to get a lower rate. This is an option that few people can afford; those that can should think very carefully before investing in their home if it is underwa- ter and may depreciate further. Without advice of counsel, never use retirement savings (IRA, a profit-sharing plan, 401K savings or 403B savings) to pay down your mortgage or even make a loan payment if you are delinquent. Today, the government purchases more than 90 percent of all mortgages in the market. HAMP, the home afford- able modification program, has been considered a failure by the Government Accounting Office in achieving its goal of modifying and assisting millions of homeowners. The number of permanent loan modifications is approximately 467,000, less than 10 percent of the 5-6 million families that the government planned to assist in 2009. The Jewish Housing Association (JHA) believes the lack of understanding by the government as to how to incentiv- ize the private sector to utilize these pro- grams is prolonging the housing crisis. While we will continue to utilize these programs for the benefit of our Jewish community, the damage to the housing market from the uncertainty and incom- petence of government housing assis- tance programs is unmistakable. Nevertheless, JHA is here to help you navigate these programs. We have achieved more than 125 loan modifi- cations and met with more than 500 families. If you have not met with us yet, feel free to call us at (800) 458-0404 for a confidential and private meeting. Li Bob Pilcowitz is chairman of board of the Jewish Housing Association of Metropolitan JN Read his latest blog, My Purim Adventures about how a change in plans resulted in a memorable holiday at: http://thejewishnews. com/community Levi Stein blogs about his thoughts, events, international travels and experiences. Detroit. 1567500 BRIDGEFORD ® The Bridgeford faucet completes a traditionally styled kitchen without sacrificing 21st century performance. Old-world detailing is perfected on the Bridgeford kitchen faucet bringing modern functionality to a Victorian-styled kitchen. The faucet is available in oil The Jewish Housing Association of Metropolitan Detroit Inc. is a nonprofit Michigan corporation whose purpose is to ensure that no Jewish family goes without affordable housing and to assist the Jewish community during this time of crisis. For information, call (800) 458-0404 or apply online at www.jhamd.org . All services are confidential and provided at no cost to the homeowner. rubbed bronze, MIA 344, brushed nickel and Starlight* chrome. VADVANCE Plumbing Supply Company COME VISIT OUR OUTSTANDING SHOWROOM 1977 E. West Maple Road • Walled Lake, MI 48390 9 13.„? YEARS 248.669.7474 G RO H E ENJOY WATER' 1920 - 2010 November 18 - 2010 65