There are some encouraging reports on the housing
situation since the onset of Obama Mortgage Relief Plan 2013. Recent study
shows less foreclosures and a decent amount of purchase of homes, in certain
areas. People have realized that most mortgage problems can be solved through a
better, more affordable loan plan. The Obama mortgage relief program 2013 houses
some of the best techniques adopted by the US administration to lift the
nation’s struggling housing market.
With the announcement of an extension, till December 2015,
for all the MHA programs, more and more homeowners are encouraged to benefit
from the prevailing low interest rates on mortgages through the HARP 2.0
refinance option. Obama mortgage relief program details reveal that this
program is a great help for borrowers who are not behind on their mortgage
payments and still have been unable to get traditional refinancing. The reason
being that the value of their home has declined. HARP has been formulated to
help borrowers get a new, more affordable, more stable mortgage in such a
situation. This program is unique because normally lenders do not refinance
underwater mortgages. To benefit from this particular plan, you require a loan
application and underwriting process. Also keep in mind that refinance fees
will apply.
Apart from refinancing options, loan modification options
are also included into MHA. Home Affordable Modification Program(HAMP) is quite
popular with borrowers when it comes to loan modification. Only an employed
homeowner, finding mortgage payments unbearable, can take advantage of this
program. Other programs under MHA are Principal Reduction Alternative SM (PRA),
Second Lien Modification Program (2MP), FHA Home Affordable Modification
Program (FHA-HAMP), Obama mortgage relief for seniors or USDA’s Special Loan
Servicing, Veteran’s Affairs Home Affordable Modification (VA-HAMP), Home
Affordable Foreclosure Alternatives Program (HAFA), Second Lien Modification
Program for Federal Housing Administration Loans (FHA-2LP), FHA Refinance for
Borrowers with Negative Equity (FHA Short Refinance), Home Affordable
Unemployment Program (UP), Hardest Hit Fund (HHF).
Obama’s
Mortgage Relief Plan has
tried to bring the benefit of refinancing and modification to maximum number of
homeowners. When refinancing is opted for, borrowers look for a new, low cost
plan to manage a regular monthly saving. When modification is sought, the
existing lender is approached to modify the loan plan for a similar effect. The
amount saved can either be invested for a worthwhile project or can be utilized
to pay-off debts.
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