Obama Home Relief: What it Contains and How to Determine If You Qualify
By John Roney
During 2009, the bailouts for mortgages continued on with the new house refinancing plan that was created to assist floundering homeowners who have not been qualified for the traditional method of refinancing their loans due to the rapid reduction in property values. The current housing problem did away with the equity that millions of homeowners once had. The HARP, or Home Affordable Refinance Program brought around a new type of government refinancing methods that has become available to a broader section of homeowners.
HARP is a segment of the Obama home relief Plan that assists American homeowners in reducing their mortgage loan payments or altering their current mortgage loan payments so that they are able to remain in their house and keep foreclosure at bay.
The most current government refinancing initiatives offer a few different type of benefits over that of the conventional refinancing of a home mainly because it does not need any equity. Actually, the house values have reduced so much that the latest Obama mortgage plan allows homeowners to refinance their current mortgage payments up to that of 125% of the present property value of the property. The "125 loan plan" is hopes to help homeowners refinance into that of a reduced mortgage monthly payment.
And this program is voluntary for banks who have not received federal bailout money from the Troubled Assets Relief Program (TARP). While most of the big banks have received funds, many smaller regional banks have not -- and these banks may not be willing to write down the value of their loans by 10-20%. Writing down the value of bad mortgage securities is what has caused so many paper losses on bank balance sheets already; it is inconceivable that many struggling banks will want to admit to even more.
There is also a second part of the bailout plan that may allow homeowners to qualify for a government-guaranteed mortgage modification program. This involves the bank modifying the loan to be within 38% of the borrowers' gross income and the government stepping in with money to help reduce the payment to 31%.
HARP is a segment of the Obama home relief Plan that assists American homeowners in reducing their mortgage loan payments or altering their current mortgage loan payments so that they are able to remain in their house and keep foreclosure at bay.
The most current government refinancing initiatives offer a few different type of benefits over that of the conventional refinancing of a home mainly because it does not need any equity. Actually, the house values have reduced so much that the latest Obama mortgage plan allows homeowners to refinance their current mortgage payments up to that of 125% of the present property value of the property. The "125 loan plan" is hopes to help homeowners refinance into that of a reduced mortgage monthly payment.
And this program is voluntary for banks who have not received federal bailout money from the Troubled Assets Relief Program (TARP). While most of the big banks have received funds, many smaller regional banks have not -- and these banks may not be willing to write down the value of their loans by 10-20%. Writing down the value of bad mortgage securities is what has caused so many paper losses on bank balance sheets already; it is inconceivable that many struggling banks will want to admit to even more.
There is also a second part of the bailout plan that may allow homeowners to qualify for a government-guaranteed mortgage modification program. This involves the bank modifying the loan to be within 38% of the borrowers' gross income and the government stepping in with money to help reduce the payment to 31%.
Posted by Oriflame Indonesia at 2:48 AM
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