The core of the President’s foreclosure prevention program is to get $75 billion from the funds that have been approved by Congress for the bailout of the financial services industry and apply it for the program to designed fight against the trend of increasing number of foreclosures. The three main goals of the Barack Obama foreclosure prevention program are refinancing, more loan modifications, and the provision of more home loans
The President wants to help borrowers who are underwater in the mortgage loans to obtain refinancing from the banks and in the process make their monthly payments more affordable. To be accepted under this initiative of the Barack Obama foreclosure avoidance program, the loan balance of the homeowner should not be more than 105 percent of the property’s present value. The program’s next component has the purpose of encouraging the banks to accept applications for home loan modifications from homeowners to bring down their monthly payments to at most 31 percent of the salary that they receive every month. Finally, the Barack Obama foreclosure prevention program has allocated $200 billion for Fannie Mae and Freddie Mac to allow them to offer more home loans.
The Barack Obama foreclosure prevention initiative, which is better known as the Making Home Affordable Program, has made a slight progress in its attempts to assist borrowers in their efforts to get out of the foreclosure trap in the face of decreasing home values and rising unemployment rates. According to statistics that have been revealed during the last week of September 2009, the plan of the President appears to be working at last. It is believed that the Barack Obama foreclosure prevention initiative has caused home values to stop dropping and the slow down in foreclosure rates in a number of states. Nevertheless, many people still point out that only a slight percentage of those who should have qualified for home loan modifications have gotten the approval of banks.
Some people disapprove of the Barack Obama foreclosure plan for what they claim is the lack of sound economic foundation. However, the federal government remains optimistic about the plan and has been issuing updates on its progress. The Administration has proudly declared during the first week of October 2009 that they have finally reached a milestone that they thought would only be accomplished by the first week of November 2009. Apparently, the plan’s goal of having more than half a million trial loan modifications approved has become a reality almost one month ahead of projections. It is therefore too early to disregard the Barack Obama foreclosure prevention program and call it a failure. To learn more about the foreclosure process stop by http://rismedia.com
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