For those trapped in unaffordable mortgage loan, President Barack Obama's Homeowner Affordability Plan (HMA) is good news. The plan is meant to offer assistance to as much as 7 to 9 million homeowners doing their best to stay current on their mortgage payments. It is a recovery plan that brings the government, lenders and borrowers together to share responsibility towards ensuring homeowners making good-faith effort to stay current on their mortgage payments can afford to stay in their homes.
How does Obama's HMA Plan deliver such a promised assistance to those struggling with their mortgage loan?
Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Decrease in Home Values
Mortgage rates are currently at historically low levels. However, falling home prices make these responsible homeowners unable to access these lower rates. It is one of the reasons why the HMA Plan has been enacted � to provide the opportunity for 4 to 5 million responsible homeowners to take advantage of these lower rates by modifying their mortgage loan guaranteed by Freddie Mac and Fannie Fae.
But how can your mortgage bank know you are a responsible homeowner? You will have to prove it with sufficient income and an acceptable mortgage payment history. Having proved so, you may then have the opportunity to refinance your mortgage into a 30 or 15-year, fixed rate loan.
A $75 Billion Homeowner Stability Initiative to Prevent Foreclosures and Help Responsible Families Save Their Homes
The aim is to reach up to 3 to 4 million homeowners who are struggling to afford their mortgage payments due to the current recession but are unable to sell their homes because of falling prices. The objective is to help them before they miss a payment.
But how do you know you are qualified to get a share of this $75 billion initiative? First, you are not a delinquent borrower. Second, you currently occupy the home you own. Third, you may be a borrower on high total debt level but agree to enter HUD-certified consumer debt counselling.
To save your home,
click here to get the help you need to qualify for a
mortgage modification loan.
