Obama Loan Modification
October 21, 2011 – 10:43 amFor the last five years, the United States financial market became unstable. During these period, hundreds if not thousands of people lost their jobs due to the crisis their companies or employers are undergoing. Some professionals have become not required at all. Some of these people are showmen, realtors, construction engineers, marketing directors, IT specialists, headhunters, PR specialists and bank clerks. In this regard, thousands of people were not able to pay their mortgages resulting to an increase in the number of home foreclosures in the country. President Obama’s administration noticed this trend that is why the Obama Loan Modification Program or Homeowner Affordability and Stability Plan (H.A.M.P.) came to rise.
The Obama Loan Modification Program aims to help those people who are planning to avail of a loan, or for the borrowers having difficulty in paying their debt. The goal of this program is to give information about the right process in getting a loan, how to prevent foreclosure of their properties and to know how to pay this loan on a legal basis. The program is designed to reduce the monthly mortgage for people who are close to foreclosure by lowering the payments on their loans. Usually borrowers are given thirty (30) to thirty-five (34) years of amortization but through this program, the amortization can be extended up to forty (40) year, additional five (5) years to the original. In this way, people are given higher chance of owning a home despite the crisis in the economy. This maybe yet the best program the Obama administration had for homeowners.
The program has indeed a lot of advantages for the borrowers but there are also benefits for the mortgage servicers. Some of these mortgage services are one the country’s biggest banks. This include Bank of America Corporation, JP Morgan Chase & Co. and Wells Fargo & Co. These lenders are to receive a certain amount from the Obama administration to carry out the plans of the program. However last June of this year, according to the Los Angeles Times, the Obama administration has punished three of the nation’s largest banks, judging them unworthy of receiving financial incentives through its signature foreclosure relief program until they improve their practices. Bank of America Corp., JP Morgan Chase & Co. and Wells Fargo & Co. were found to be in need of “substantial improvement” under the $75-billion Home Affordable Modification Program, officials said.
In conclusion, the Obama loan modification program has a lot of help to offer to suffering borrowers who are aiming to pay their mortgages in full. Their plan is also well conceptualized with a very achievable goal in mind but then again, it all boils down to the execution. The Treasury Department has to take its place in enforcing its program rules and regulation.
To know more on how to apply and be qualified for Obama’s Loan Modification kindly visit http://www.obama-loanmodification.com/
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Tags: Modification, Obama
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