You must owe at least 115% of the value of your home to qualify under the government’s recently announced program to help underwater homeowners – those who owe more than their mortgage balance.  Your Texas appraisal district’s 2010 Market Value will influence whether you qualify – if it’s too high you may not qualify.  That’s why, even if you owe more than your home is worth, it makes sense to protest your 2010 Market Value in May, regardless whether it has changed from last year or not.

The other requirements announced by the White House March 19 include

• You must live in your home.  (Having the Texas Homestead Exemption should suffice.)
• Have a mortgage balance under $729,750
• Have a first mortgage payment that is more than 31% of your gross monthly income.
• Demonstrate that you are undergoing financial hardship, such as a mortgage payment that has risen recently or a reduction in income.

Any principal balance that is forgiven will be done in equal installments over three years but only if your make your mortgage payments on time.

For more information from the New York Times of March 26, 2010 copy and paste this url into your browser window:

http://bucks.blogs.nytimes.com/2010/03/26/answers-to-questions-about-new-mortgage-modification-program/?scp=10&sq=How%20the%20Plan%20Worsk%20by%20Ron%20Lieber&st=cse