In response to the recent housing
market crisis and increasing number of foreclosure, a need to provide relief to
tens of thousands of homeowners who struggle to afford their mortgage payments
and are therefore at imminent risk of foreclosure has arisen. To help these
homeowners manage their mortgage payments wisely and prevent foreclosure, the
Obama administration introduced the Making Home Affordable (MHA) plan or Obama
mortgage relief plan which comprises two major programs, a loan modification
program and a mortgage refinance program. Depending on homeowner’s individual
mortgage payments troubles and overall financial situation, he should move
ahead with the right program.
Needless to say, a prolonged inability
to afford mortgage payments and having a number of defaults on mortgage not
only leads to lower credit score but it also makes homeowner suffer from
foreclosure which no one will prefer to experience in his or her life. Here, one
can use Obama mortgage relief plan 2013 to his advantage. But prior to applying
for it, it is advisable to understand what this program is all about, how it
functions and what alternatives to foreclosure it consists of.
Under Obama mortgage relief plan, one
can consider applying for the Home Affordable Modification Program HAMP which
is designed for homeowners who are struggling to make their mortgage payments;
HAMP may help these homeowners lower their monthly mortgage payments to make
them more affordable and sustainable. On the other side, borrower who is not
behind on his mortgage payments but cannot get traditional refinancing due to
declined value of his home can consider applying for the Obama mortgage relief
plan known as Home Affordable Refinance Program which could help him refinance
into a more stable and affordable mortgage product. Moreover, there is also the
Second Lien Modification Program which can be opted for to have modification or
principal reduction on borrower’s second mortgage.
Thus there are many alternatives under Obama Mortgage Relief Plan 2013 which one can explore; however each program is designed for
specific needs of struggling homeowner and different programs have different
approval criteria, process requirements, etc. Therefore, it could be advisable
for one to engage a competent mortgage expert prior to making his choice. The
expert who has spent years in the mortgage industry will assist borrower well
in choosing the right Obama mortgage relief plan 2013 or program and also help
him improve his eligibility for the same. To know more about the subject
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