The federal plan to help you avoid foreclosure -- Newsday.com

BY JONATHAN STARKEY
Special to Newsday
March 13, 2009
If all works as drawn, a mortgage rescue plan unveiled by the federal government last week will help millions of homeowners avoid foreclosure, and millions more could see a reduction in their monthly payments. For those who may need help, here's an outline of both components of the 'Making Home Affordable' plan and some points of advice to consider before calling your mortgage company.

Be persistent

Most housing experts are hailing the merits of patience. Servicers and lenders are expected to be inundated by requests, and some details of the plan are not yet clear to lenders, finance and real estate experts say. (The federal government's Web site is asking people to 'be patient' because lenders might not be ready to start the program. As lenders sign contracts to participate, a list of them will be available at financialstability.gov, according to the site.)

But as homeowners move through the process of refinancing or modifying a loan, being persistent will be a key to success, says Lynn Law, director of education and counseling at the Long Island Housing Partnership, a Hauppauge-based nonprofit that gives affordable housing opportunities. Law provides mortgage counseling and has worked with servicers on behalf of borrowers seeking mortgage modifications.

THE POTENTIAL TRAP Timid borrowers might not press servicers about the status of their applications, Law says, adding that this might cause a delay in getting help.

ADVICE Make that second call - and a third and fourth, Law says. Do not assume the lender or servicer r"