Help Is Underway with the Obama Foreclosure Prevention Plan
The Obama foreclosure prevention plan has the goals of increasing the number of refinanced home loans, boosting the number of available home loans for first-time home buyers, and motivating banks and lenders to agree to more loan modifications. The Helping Families Save Their Homes Act that was approved by President Barack Obama in May 2009 is the main foundation of the program. The above-mentioned law is an addition to the Hope for Homeowners Act that was authorized previously for the purpose of lending a hand to homeowners who have found the values of their homes declining such that the value of their unpaid loans were even bigger than the current prices of their properties.
The Obama foreclosure prevention plan helps borrowers in getting the banks and other lending institutions to agree to their loan refinancing proposals to bring down their monthly installments to more affordable amounts. It should be noted, however, that a borrower must have a loan balance that is not more than 105 percent of the current market price of his home in order to qualify for the program. The initiative of the President also offers bonuses to banks and lenders if they agree to a loan modification that will decrease the monthly installments to a value that will not exceed 31 percent of the borrower’s monthly income. Fannie Mae and Freddie Mac will also be able to offer a greater number of home loans for first-time home buyers because the Obama foreclosure prevention plan has added to the funding of these two corporations.
Unfortunately, the critics of the Obama plan quickly grabbed the chance to pick apart the initiative when it failed to make a noticeable effect on the housing crisis in September 2009. But those who are in favor the Obama foreclosure prevention plan countered that it has started to have some positive effects. For example, the plan seems to have been the major cause of the reversal of the declining trend in home market prices and the rise in the number of foreclosure filings in a number of states. However, some of those who are critical of the President’s plan noted that only a small percentage of those who are supposed to be eligible for loan modifications had benefited. Some opponents also pointed out that the Obama foreclosure prevention plan should have been based on acceptable economic principles. But members of the Obama Administration continue to support the plan and have revealed that a milestone had been attained in the number of loan modifications that pushed through. The members of the Obama Administration are positive that the President’s anti-foreclosure plan will succeed in the long run and continue to report to the public regarding its successes. Check out http://hardmoneylendersonline.com to view other methods of loan funding availeble
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