Foreclosure Prevention Plan
March 6th, 2009 Categories: Market Watch
The Obama administration released guidelines which will allow lenders to begin modifications to eligible loans under the “Homeowner Affordability and Stability Plan.” The Foreclosure Prevention plan is estimated to help seven to nine million homeowners make their loans affordable and prevent foreclosure. 
Here’s an outline of these guidelines from the Department of Treasury: click this link for the summary
According to the U.S. Department of Treasury, “The Home Affordable Refinance Program” will be available to 4 to 5 millon people who have solid payment history on a mortgage owned by Fannie Mae or Freddie Mac. These are homeowners who could not refinance because they owed more than 80% of the home value. Many homeowners will now be able to refinance and take advantage of the low interest rates and turn a variable rate mortgage to a 30 year fixed. Documentation for these loans is suppose to be less cumbersome and not cost an arm and a leg to process. This program ends June of 2010.
“The Home Affordable Modificatiom Program” will help 3 to 4 million at risk homeowners avoid foreclosure by reducing monthly payments. Today the Treasury Department announced the program guidelines that may become standard industry practice in pursuing affordable and sustainable mortgage modifications. This program will work together with an improved Hope for Homeowners program. Servicers can begin immediately to assist homeowners that are at risk in modifying their loans.
RisMedia published this article on how to help homeowners understand Obama’s foreclosure plan: Obama’s foreclosure plan
I know that many consumers have lots of questions, so heres a link to the Treasury Department’s Q&A guide: Q&A Guide
I do believe that we are headed in the right direction and I think we are headed for a recovery but it won’t happen overnight.
Hi Can anyone recommend a good loan modification attorney? Or do you think I should try this myself. If so, can you recommend a good kit so I will know what not to do?
Thanks!