Obama Mortgage Relief 2010: Obama Increases the Reach of Federal Loan

July 17th, 2011 | Posted in Debt Relief

It was in February 2009 when Obama administration announced Loan Modification Program. The main intention was to make the home affordable for homeowners who were otherwise not able to pay back the mortgage on time. In the very first year of its start, around millions applied for the modification and as the result they saved approximately $500 every month on their house payments.

Take for example a couple who bought there home a few years ago during the housing boom. They paid $400,000 for their lovely 4 bedroom home. They put down $40,000 dollars or 10% and financed the rest. On their $360,000 loan they got a rate of 6.50% which is fixed for 30 years. Now fast forwarding to today we see interest rates on mortgages at really low levels. This couple could be eligible for a rate of 5.25% for a 30 year fix, however their home which was valued at $400,000, when they first bought it, is now valued at $340,000.

But with the modification done, the loan modification application will be accepted, provided the homeowner shows his/her financial hardship and financial stability to pay back the reworked mortgage on time. The federal government is stepping up the plan to modify the program further so that homeowners who are grappling through a bad financial situation can be covered. A program which is funded by Emergency Economic Stabilization Act of 2008 (“EESA”) is also under way and aims to fund various home affordable and mortgage programs for specific locations in order to prevent the foreclosures.

On questions 1-6, you may be eligible for modified loan. If you answered “no” to 7 & 8, then depending on the lender, you may or may not get a loan modification agreement. Lenders review at you past mortgage payments and if there is bankruptcy in your history to determine if you are eligible or not.

This module also prevents the home from foreclosure. Remember, Obama’s loan modification program has been designed to give benefits to the homeowners. The only job of homeowners out here is to keep in their eyes and ears open so that they are ready to enjoy the benefits of program. A homeowner who is in doubt can go for the services of loan modification expert. Making Home Affordable Program is a turning point for many individuals and many homeowners are already availing the benefits under it.

Learn more about Obama Mortgage Relief Plan Qualifications.