Obama Team Announces Loan Modification and Housing Relief Plan
by admin ~ March 8th, 2009.The Associated Press reported that the Obama administration rolled out a new loan modification program Wednesday designed to help up to 9 million borrowers stay in their homes through mortgage refinancing or mortgage loan modification plans to lower mortgage payments each month for the remainder of their loan terms. Borrowers, however, are being advised to be patient in their efforts to get help, because loan modification companies are likely to be buried with phone calls.
Government officials, launched the “Making Home Affordable” program, also acknowledge that the initiatives are only a partial fix for a massive problem that has significantly contributed to the worst recession in decades for the U.S. economy. As a matter of fact, thousands of distressed homeowners facing foreclosure in the most devastated housing markets concentrated in California, Florida, Nevada and Arizona will not be eligible for the two plans. “It’s not intended to prevent every foreclosure or to help every homeowner,” a senior Treasury Department official told reporters. “It’s really targeted at responsible homeowners.” Many home foreclosure experts working on achieving more affordable home loan payments for the struggling homeowners are hopeful that the stimulus package and the Obama mortgage relief bill can make a difference. The foreclosure crisis has played a major role in the recession and the deflated home values.
Many mortgage brokers, however, are critical. They argue that the fees imposed by Fannie and Freddie over the past year make it difficult for borrowers to afford mortgage refinancing. The two companies, which are now government-controlled, have yet to detail how they will implement the plan, or whether any fees will be rolled back.
Category: Featured Articles, Foreclosure news, Mortgage News | Tags: loan modification, mortgage loan modification, mortgage refinancing