subject: A Short Overview Of The Obama Mortgage Plan [print this page] The housing market experienced a rapid drop in the 2000s and President Barack Obama and his administration created a plan to help the real estate market, the economy, and the homeowners. The Obama mortgage plan reached out to the lenders to encourage them to provide the homeowner with refinancing and modification loans. It also made the process easier to understand and the qualifications more streamlined.
In 2009, the plan was criticized for being too restrictive because it only supplied assistance to homeowners with certain government-backed loans. In 2012, the program was expanded. More people are eligible for assistance, as long as they can meet the criteria.
The Obama mortgage plan allows for assistance for a minimum period or three months and a maximum of six months. Your monthly payment may be lowered by as much as 31 percent for that period of time. First, you must be experiencing a financial hardship, which could range from losing a job to increased expenses, and you must be able to supply proof.
In order to qualify for the mortgage modification program, the homeowner must live in the home for which they are requesting assistance. The home you live in is considered your primary residence and it must be in habitable condition. You cannot participate in this program for rental, vacation, or commercial properties.
The balance of the mortgage on your single-family home cannot be more than $729,750. If you owe more than this on your home, you cannot participate in this program. You will need to ask your lender if there are any other programs for which you would be eligible.
The purpose of this program is to keep people in their homes. Therefore, even if you Are about to go into foreclosure, it is not going to ban you from seeking help from this program, even if you are already in foreclosure. If you are suing your lender, you may still qualify for this program, providing that you also meet the other criteria.
Some people owe a substantial amount their mortgage balance for their single-family home. However, if your mortgage balance is more than $729,750.00, then you will not be able to participate in this program. If your balance is greater than this, you will need to contact your lender to determine your eligibility for other programs that are available.
The Obama mortgage program has undergone several changes since its inception in 2009 and has helped millions of people with millions more to apply in the future. If you need help getting back on your feet, you should consider applying for this program if you qualify. If you have any questions, you should consult with your lender to determine your eligibility.
