Obama Homes: Obama's Loan Modification Program - Making Homes Affordable

Posted by The Popular News Today on Wednesday, October 12, 2011

By John Roney


The Home Affordable modification is an effort by Obama's government to help poor homeowners who are facing serious financial crisis and are facing foreclosure. All the homeowners who are currently not in condition to repay their installment amount of their mortgage can now get their loan modified and refinanced through this program. This plan will make the home loan affordable and sustainable. People would now be able to continue with their home ownership.

There are several grants for homeowners which are offered by Federal Government and these are not needed to be paid back. This include grants for all your education, credit card payments, loans payments, petrol for your car, home renovation etc. All this funding is going to help those homeowners who are really poor live a normal life and get rid of all the expenses in the time of trouble.

The first part seeks to assist homeowners who are unable to refinance because of the depreciation in the value of their home during the recent housing downfall. It is based on the concept that a homeowner will prefer to keep his home, even if its value has depreciated below the amount mortgaged. As Warren Buffet pointed out, foreclosures don't occur because a loan turns upside down. They occur because the family can no longer afford the payments. To qualify the current mortgage loan amount must be greater than 80 percent of the home's market value.

For every program you opt for you will have to write and present a hardship letter to your lender. Here is what the hardship letter must have in it. You must be able to convince your lender so that you get a approval. So you must mention the reasons because of the financial breakdown, the measures taken by you to cure the problems and your commitment towards keeping the home ownership in the hardship letter.

The bottom line is this. The program you should be looking at is the HAMP program. If you are in debt or behind with your mortgage or fear you are on your way to being so then get help and find a company that is part of the loan modification bailout program or making homes affordable as it is called.




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