Many people call it the Obama Mortgage. The official program called Making Home Affordable, and since early 2009, this program has offered hope for homeowners trying to avoid default and foreclosure on their home loans.
Avoid Default of Foreclosure with the "Making Home Affordable" Program
Many people call it the Obama Mortgage. The official program called Making Home Affordable, and since early 2009, this program has offered hope for homeowners trying to avoid default and foreclosure on their home loans. The program was created to reach some nine million borrowers with a combination of refinancing options and loan modification. Who qualifies for an Obama mortgage refinancing plan? There is a list of requirements, but the basic rules include:
Being current on all mortgage payments for the past year. Under the rules of most housing rescue bills passed in 2008 and 2009, you must be current on all mortgage payments. Financial advisors warn borrowers not to let their loans go into default status or foreclosure this is one reason why. You can't be approved for an Obama mortgage refinancing or loan modification plan unless you can prove on-time payments for 12 months. "On time" is defined as being no more than 30 days late on any payment.
Obama mortgages are for those who are applying for mortgage bailouts for the loan on the primary residence. This kind of homeowner's relief is only for people living in the home. House flippers and resellers aren't eligible.
Homes financed with a Fannie Mae or Freddie Mac loan are eligible. If you have financing outside Fannie Mae or Freddie Mac, you won't be approved for an Obama mortgage under the Making Home Affordable program. Do you know if your home loan meets this requirement? Call your loan officer or call 1-800-Freddie or 1-800-7FANNIE for details.
Obama mortgages are also designed for those who meet certain loan-to-value ratios. According to the Making Home Affordable official site, you should compare the amount you owe on your first mortgage to the value of the home. Is the amount you owe approximately the same or less than the current value of your house? If so, you may qualify for refinancing under the Obama mortgage plan.
Call your loan officer to starts the application paperwork. Be sure to have the same kind of information you collected to get your first mortgage, including data on your current loan and your second mortgage if you have one. You will also need to provide information on your credit cards, personal loans and auto loans. You'll also be asked to supply your most recent tax documents.
There are approximately $290 billion in FHA loans projected for 2009. While indicators show conventional lending markets are still feeling the effects of the housing slump the FHA has taken a larger role in helping consumers get affordable home loans.
If you don't qualify for refinancing, but are eligible for loan modification under the Obama Mortgage, there are several things to be aware of once the screening process ends and you have been approved for loan modification.