-
Refinance second mortgage with 2nd Mortgage loans

Compare Mortgage Rates and Save:
Refinance Today!

  Property State
  Property Type
   

The New Obama Housing Plan For Distressed Homeowners

The Obama housing plan of 2009 was supposed to help almost 8 to 9 million homeowners who were deeply underwater on their mortgages. Nevertheless, the target is far from being achieved if reports emanating from the Department of Treasury are to be believed. Remember, a massive $75 billion stimulus money package was earmarked for enabling financially struggling borrowers in reducing their monthly payments by way of home loan modifications or refinancing. The ultimate goal of the program was to arrest the rising spate of home foreclosures across the country, an outcome of the bursting of real estate bubble. However, not many homeowners have got benefited with the federal plans till date.

The dismal results have only paved way for the Obama new housing plan, an updated version of the program which is already in effect. Changes have been once again proposed, like before, to reach out to more distressed homemakers. Relaxation in eligibility guidelines and underwriting process requirements top the list of measures which have been deemed to produce the desired effects for the sagging housing market. The Congress has been very skeptical about the performances of various government programs over the last 2 years and for implementation of the proposed changes, its approval will be necessary. And this could well be a hard nut to crack for the Obama administration, what happens has to be seen.

One of the main reasons for which only few have been able to taste success with Obama’s housing plan is the complex set of eligibility guidelines and strenuous process requirements. Receiving mortgage relief assistance through funds provided by the government of the United States is not a gift, but one has to qualify for it. Many loan modification and refinance loan applications have got denied in the past on account of improper understanding of qualification criteria or furnishing of incorrect documentation. In most of the cases, applicants may have attempted to undertake the process on their own, thereby belittling the need for guidance from a competent mortgage expert who is well versed with the task.

Get Better Lenders, Better Loans, Better Rates, Apply Now

Who May Benefit With Obama’s Housing Program?

Right from the day the Obama housing relief plan was initiated; the President had made one thing very clear, “The program will help those homeowners who have displayed a sense of responsibility”. This only goes on to suggest that the mortgage bailout alternatives are not meant for unscrupulous investors. To drive the point, the President curtly said that the program will in no way mitigate the miseries of borrowers who purchased homes which they knew were hard to afford. But that may not be the case. There may certain categories of homeowners who definitely get benefited with the provisions of the programs.

For example, the Obama house plan could be helpful for people who held a reasonable mortgage but lost their jobs later on or experienced reduction in monthly income. Besides, even those borrowers whose home values have declined and owe more on their homes than their actual market worth may benefit. The basic objective of the Obama assistance is to assist homemakers in avoiding foreclosures and therefore, homeowners could take advantage of the plan to make monthly payments sustainable.

By using the Obama housing plan 2012, you could modify existing mortgage loans to reduce interest rates extend loan durations if your current home mortgages are not backed by Freddie Mac or Fannie Mae. But if you are underwater on your present mortgage meaning you owe debt more on your home as compared to its value and your home loan is owned or guaranteed or insured by Fannie Mae or Freddie Mac, you could refinance it to lower rate of interest and favorable terms under Obama program.

Learn How To Qualify For Obama Housing Plan

Obama’s mortgage relief stimulus package provides two major options with some marked differences in their qualification criteria as mentioned below:

Loan modifications

To be eligible for a home loan modification with the housing program, a borrower

  • May be either delinquent or current on existing monthly payments
  • Should have a mortgage which has been approved before 1st Jan. 2009
  • Must be owner and primary resident in the home for which mortgage is to be modified
  • Has to provide proof for stable as well as regular monthly income in the form of 2 very recent paystubs
  • Draft an affidavit or letter of financial hardship that cites valid reasons for default on monthly payments
Mortgage Refinance Loans

Home refinancing

To be eligible for a home loan refinancing with the housing program, a borrower

  • Must have a mortgage which is guaranteed by either Fannie Mae or Freddie Mac
  • Cannot owe debt that is more than 105% of the present market price of the home
  • Should have maintained regularity of monthly payments for the past 12 months
  • Is allowed to refinance for a single payment default which is not more than 30 days
  • Must have sold the mortgage to Fannie Mae or Freddie Mac before 1st May, 2009
Mortgage Refinance Loans
Refinance Services
Get your fast, free
Mortgage Refinance Quote
Lenders Compete for Your Loan!
Property State
Property Type
Both Fields are Required
All Private Info Collected Via Secure Form

The LoanexFastCash.com Services

Car Loans | Auto Refinancing | Auto Insurance | Mortgage Refinance | Loan Modification | Debt Consolidation | Debt Settlement | Filing Banlruptcy


Privacy Policy | Terms of Uses | Contact LoanexFastCash.com

Secure Eho

The LoanexFastCash's technology and processes are exclusively owned and Copyrighted © by LoanexFastCash.com - 2005-2020. All Rights Reserved. This site is directed at, and made available to, persons in the continental U.S.