Obama Loan Modification Plan – Is Making Home Affordable Working?
Posted on | October 20, 2009 | 2 Comments
The Obama loan modification plan Making Home Affordable was designed to allow home owners to modifying to a lower mortgage rate to avoid foreclosure. Part of the plan was also to keep mortgage interest rates as low as possible so home owners could refinance to a lower mortgage rate which would also reduce their monthly mortgage payment. The question many people are asking is “is the Obama mortgage plan helping?”
In all reality it is still very early in the process to decide if the plan is working or not. Mortgage lenders have hit the number of modifications that President Obama mandated but the number of foreclosures is at a record high. Over the last three months we saw the most foreclosures in history so one would think that the plan is not helping enough.
The ultimate problem is the unemployment rate and lack of jobs. No matter what mortgage rate you have or how much your monthly mortgage payment is it will not be low enough if you have no money coming in. With the unemployment rate getting very close to double digits it is going to be tough to stop the increasing number of foreclosures.
For those of you who can benefit from the Making Home Affordable plan I urge you to get out there and do what it takes to lower your monthly mortgage payment. You can find out if you will benefit by going to the Making Home Affordable website. This website is quite extensive and has a lot of information so make sure to take your time to read through this website and get the information that you need.
At this point we do not know if the loan modification program is helping that much. Many analysts feel like we are getting very close to getting out of the recession and that the housing market has bottomed. Others feel that we are continuing to do the same things that got us into these problems. It is up to you to decide where you stand on the issue and let your voice be heard.
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Author: Mike Garner
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2 Responses to “Obama Loan Modification Plan – Is Making Home Affordable Working?”
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October 21st, 2009 @ 8:30 am
[...] writer, Mike Garner, stated the following in a recent post: “For those of you who can benefit from the Making [...]
October 21st, 2009 @ 12:57 pm
I have been contacting Countrywide about refinancing my mortgage. I qualify for the up to 125% refinancing under the program. However, the bank tells me that because I have PMI, I have to wait for Phase II to be announced. According to the Making Home Affordable website, I simply refinance and continue to paying my PMI. I’m not sure if Countrywide (now Bank of America) is misleading me.