Apr 15 2009
President Obama Federal Mortgage Modification Home Affordable Program
President Obama’s Federal Mortgage Modification Home Affordable Program “Making Home Affordable” is part of Obama’s plan of action to halt foreclosures, and get housing back on track. With the Making Home Affordable Program, up to nine million American families may be eligible to refinance or modify their loans to a payment that is affordable for them now, so they can live a normal fiscal lifestyle. Lenders work with the federal government on a loan mortgage modification for the borrower so the monthly payment is reduced to 31% of their monthly income. By doing this, the borrower is put on a three month trial period to ascertain if they can make their payments on time. If they do, then the program continues with the new lower payment. If not, the lender resets back to the old program. The home affordable modification program set forth by Obama allows the lender to lower the interest rate, lengthen the term and/or reduce the principal balance of the existing mortgage.
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