Obama Modification Program – Making American Homes Affordable
The Obama Modification Program is the administration’s answer to the homeowners’ rising need for loan restructuring across the country. Troubled homes have changed meaning in the current American economic recession. Homeowners are finding that they now owe more than they own with regards to their mortgage rates and the present value of their homes.
The modification program, or the Making Home Affordable plan, is President Barack Obama’s project that has been allotted $75 billion to refinance loan modifications and make it affordable to more than 9 million American homeowners. Through the modification loan subsidies for borrowers and incentives for lenders, the government hopes to alleviate foreclosures to qualified applicants. The primary aim of the loan modification is to lower mortgage rates and cut down principals. The program is divided into two categories that endeavor to assist either current and struggling homeowners or borrowers.
For Current Homeowners:
For borrowers whose home values have decreased, the program can slash down mortgage rates and make it affordable. This option is homeowners who are still paying their mortgage payments. Their loans should also be guaranteed by either Freddie Mac or Fannie Mae. The Obama modification program can refinance their homes with reduced or little equity. If you fall under this category, you can now get a loan amounting to 105% of your home’s market value.
To make sure that you qualify, you need to answer “Yes” to all of the questions below:
1. Are you still currently living in your home?
2. Is your loan backed-up or guaranteed by either Fannie Mae or Freddie Mac?
3. Are you up to date with your mortgage payments in the last 12 months?
4. Is your monthly amortization more than the existing market value of your house?
For Struggling Homeowners:
The other category of Obama’s modification program seeks to remedy the home loans of borrowers who are struggling to make their payments or are at high risk of foreclosure. The loan modification will subsidize home loans by adjusting monthly payments to 31% of the borrower’s monthly household income. If you find yourself in this situation, the program will alter the amount that you have pay for your home so that you would not have to default on your payments.
To make sure that you are eligible, you need to answer “Yes” to all of the questions below:
1. Is your house your main home or residence?
2. Do you owe a total amount of less than or equal to $729,750 on your first mortgage?
3. Are you having a difficult time paying for your mortgage because of an increase in the rates or a drop in your total monthly income?
4. Did you receive your loan before January 1, 2009?
The Obama Loan Modification Program will help YOU. Apply now!
