subject: Many Options Under The Obama Mortgage Relief Plan [print this page] Struggling to make the monthly mortgage payments and facing the possibility of losing their homes to foreclosure is a very real situation for millions of Americans. The Obama Mortgage Relief Program was conceived to provide hope for these homeowners. In addition it is hoped that it will stabilize the country's housing market and improve the economy of the nation in the process.
There are several components of the Obama Mortgage Relief Plan to help in the various situations homeowners face. Some mortgage holders simply need to refinance their mortgage for a stable interest rate and better terms. Others need more drastic help which requires a modification when they are faced with unemployment, or reduced income, or medical hardships. Others need a way out altogether and a chance to start over without having foreclosure on their credit reports.
Lowering monthly payments is one of several program options available through the Obama Mortgage Relief Plan. The Home Affordable Modification Program (HAMP) addresses this need. People who are employed but struggling to make payments are the target for this option.
Creditworthy homeowners who have a second mortgage can also find a program to help them find relief in that situation as well. The Second Lien Modification Program (2MP) can modify a second mortgage by reducing the principal or other modifications. Only if your first mortgage has been modified under HAMP can you take advantage of this program.
For those struggling with monthly payments due to unemployment there is another program. It is called Home Affordable Unemployment Program (UP). This program can reduce mortgage payments or suspend them altogether for 12 months or more.
The Obama Mortgage Relief Plan has a provision for another common situation facing many Americans in today's market. The predicament of owing more on your home than it is currently worth is an all too common problem in today's market. The Principal Reduction Alternative (PRA) can reduce the principal owed on a mortgage and help many homeowners.
Sometimes a homeowner may simply need to leave home ownership behind, at least for the time being. The Obama Mortgage Relief Plan also gives provision for this situation with the Home Affordable Foreclosure Alternatives Program (HAFA). It allows a graceful exit from the mortgage and home often through a short sale. It even provides the homeowner with $3,000 in relocation assistance.
The Obama Mortgage Relief Plan will potentially help as many as 10 million American homeowners according to estimates. There is help under a related program to many more even if they do not qualify for these options mentioned. The Hardest Hit Fund which complements the Making Homes Affordable program has been allocated $7.6 billion to assist residents of 18 states plus the District of Columbia
