Is Obama’s loan modification helping all homeowners?
The Obama Administration announced March 4, 2009 the so called “Making Home Affordable Program”. This is Obama’s USD$75 billion dollar bail out program and many homeowners are pinning their hopes on it. Obama’s federal program for loan modification is being offered for a limited time period. The main aim of the mortgage loan modification program is to help homeowners with a lower monthly payment thus making the payments more affordable for them.
The program has a standardized layout and your loan modification request is either refused or accepted depending on your financial condition. There is no option of negotiation involved in the program.
Find out if you qualify for Obama’s Loan Modification program
You are required to meet certain criteria in order to qualify for the loan modification program. The home you are residing in should be your primary residence. The mortgage loan should have been taken out before January 1st 2009. As far the loan amount is concerned, it should not exceed USD$729,750. The mortgage payments you make every month should be 31% of your gross monthly income. This should however include insurance as well as taxes.
Although Obama’s Homeowners Affordability and Stability Plan is making a lot of hue and cry about helping homeowners but it is not proving to be beneficial for all. Let us see why.
Why isn’t Obama’s Plan helping everyone?
Obama’s Homwowners Affordability and Stability Plan fails to address the problems of “underwater” homeowners. These homeowners are the ones who have negative equity in their homes. And they have no other option but to “voluntarily” walk away from their property as making further
investment in the property makes no sense.
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