A few years back the stress in the financial system had
severely reduced the supply of mortgage credit, limiting the ability of
Americans to buy homes or refinance mortgages. Millions of responsible families
who had made their monthly payments timely, too, saw their property values fall.
The Obama mortgage relief plan was brought in to remedy this situation.
So far it has managed to help more than 2 million families to
refinance through the Home Affordable Refinance Program (HARP) and more than
1.1 million families to refinance through FHA's streamlined refinancing
program. So Obama mortgage relief plan can very well be acknowledged and appreciated
for helping families refinance their mortgage, to save thousands of dollars
each year. More than 6 million families stay in their homes through modified
mortgages now. The Making Home Affordable Program, a module of the above plan,
was a critical part of the Obama Administration's broad strategy to help
homeowners avoid foreclosure, stabilize the country's housing market, and improve
the nation's economy. Through this module homeowners could lower their monthly
mortgage payments and get into more stable loans. And for those homeowners for
whom homeownership was no longer affordable or desirable, Obama mortgage relief
plan, or MHA, provided a way out that helped prevent foreclosures.
To include more homeowners into the ambit of this plan a few
improvements were made to the qualification process. The revised version or Obama
Mortgage Relief Plan 2013 was planned to be effective till December
2013. Now it has been extended to 2015. Some of its other achievements are - expanding
use of principal reduction for eligible borrowers, providing out-of-work
Americans the opportunity of delaying mortgage payments for a year while they
get back to work, extending the forbearance period for unemployed homeowners
with FHA loans from four to twelve months, supporting state and local housing
finance agencies, supporting first time homebuyer, expanding the Neighborhood
Stabilization Program and creating HFA (Hardest Hit Fund).
Although, interest rates are moving up, some of the above
mentioned programs are still very helpful in solving problems arising out of different
mortgage situations. To understand the fundamentals of the application process
and qualification guidelines associated with each of the modules, homeowners
can depend on expert guidance available on reliable websites. A team of
competent loan refinance experts, who are well versed with the legal rules and
regulations that apply to the Obama Mortgage Relief Plan 2013,
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