Obama Mortgage Relief Plan Qualifiations Create Stir On Capital Hill
The Obama mortgage relief plan qualifications were unveiled March 4, 2009. This relief plan consists of two parts: refinance and loan modification.
- (1888PressRelease) December 15, 2010 - Houston, TX The Obama mortgage relief plan qualifications were unveiled March 4, 2009. This relief plan consists of two parts: refinance and loan modification. Much, but not all, of this plan will not have to be voted on by congress. The plan (titled "The Making Home Affordable Plan") is designed to help up to nine million homeowners. There are several eligibility requirements and not every homeowner will benefit. The goal is to reduce foreclosures thus stabilizing the falling real estate market.
The loan modification portion of the Obama mortgage relief plan qualifications is essentially a change in terms of a homeowners existing loan agreement. Incentives are being provided to lenders to participate and to homeowners to stay current on the loan. Some of these incentives include the lender receives up to $1,500 for each qualifying loan modification and the borrower will receive $1,000 a year for up to five years if current on their loan.
The Obama mortgage relief plan qualifications for loan modification are that a homeowner's loan must be controlled by Fannie Mae or Freddie Mac, the loan has to have originated before January 9, 2009 and the home in question must be the homeowners primary residence. In addition, there must be an unpaid balance of $729,750 or less and the monthly mortgage payment must be more than 38% of the owner's gross monthly income. Difficulty making payments must be due to legitimate and relevant financial hardship including an increase in payment due or a reduction in income (caused by medical expenses, demotion of employment, etc.). The Obama mortgage relief plan qualifications also state an affidavit of financial hardship is required.
The second component of the Obama mortgage relief plan qualifications, as discussed at length at http://ObamaMortgageReliefPlanQualifications.com, including refinance, involves replacing an existing loan with a new one. A feature of this element is allowing the loan to exceed eighty percent of the home's value, which could not previously be done. This will allow more people to take advantage of the current low interest rates.
Just as with loan modification, the Obama mortgage relief plan qualifications for refinancing are that the loan must be controlled by Freddie Mac or Fannie Mae. In addition it must be a conforming loan, meaning it must conform to the guidelines of government-sponsored enterprises. Other requirements state that the home must be owner occupied, the existing mortgage must be between 80% and 105% of the home's current value and mortgage payments must be current(payments must not have been more than 30 days late in the last twelve months). Proof of sufficient income to support a new mortgage must also be provided.
With the Obama mortgage relief plan qualifications some single family homes will not qualify for either program. These include investor owned homes, secondary residences, mortgages that are not controlled by Fannie Mae or Freddie Mac and homes that have loan to ratio values under eighty percent. Regardless of whether a homeowner qualifies for these particular relief programs, seeking professional legal assistance can often yield helpful results without government intervention, as discussed at http://ObamaMortgageReliefPlanQualifications.com
The Obama mortgage relief plan qualifications have caused a quite a stir. Critics deem it unfair that this program only applies to homeowners whose mortgages are through Freddie Mac or Fannie Mae. Irony within the plan is not lost on those who point out the delinquent borrowers who qualify for loan modification will be rewarded with one thousand dollars annually for staying current while many homeowners who have consistently remained current do not even receive a break on refinancing fees.
As with any plan or program, the Obama mortgage relief plan qualifications have many cons and disadvantages and has been harshly critiqued. Likewise, the plan has many pros and advantages and can help many people. While not everyone who feels entitled will be eligible within the Obama mortgage relief plan qualifications, the ones that do will receive outstanding assistance and incentives. In a down sliding economy every little bit helps.
For Inquiries on release, contact http://ObamaMortgageReliefPlanQualifications.com