Barak Obama – Michelle Obama

Has Barack Obama Foreclosure Program Made Inroads in Its Plan to Help Homeowners?

The crux of he foreclosure avoidance plan of the President is to obtain $75 billion from the funds that have been earmarked by Congress for bailing out the financial services industry and use it instead to combat the rising number of foreclosures.  The three main goals of the Barack Obama foreclosure prevention program are refinancing, more loan modifications, and the provision of more home loans

The President wants to help borrowers who are underwater in the mortgage loans to obtain refinancing from the banks and in the process make their monthly payments more affordable.  Qualification for this particular component of the Barack Obama foreclosure avoidance initiative is to have a loan balance that is not more than 105 percent of the current value of the borrower’s home.  Meanwhile, the second component is geared towards encouraging the banks to give the go signal for loan modification applications to make the monthly payments more affordable by not exceeding 31 percent of the borrower’s monthly salary.  Finally, the Barack Obama foreclosure prevention program has allocated $200 billion for Fannie Mae and Freddie Mac to allow them to offer more home loans.

So far, the Making Home Affordable Program, which is the official title for the Barack Obama foreclosure prevention efforts, has had mixed results in its goal of helping homeowners avoid foreclosure and get back on track despite increasing unemployment and plunging home values.  As of the last week of September 2009, it is believed that the President’s program has finally achieved some results.  Some argue that the Barack Obama foreclosure avoidance plan has been instrumental in the slight improvement in the foreclosure rates in some states and in the fact that home prices have stopped declining in a number of states.  Nevertheless, many people still point out that only a slight percentage of those who should have qualified for home loan modifications have gotten the approval of banks.

Some have criticized the Barack Obama foreclosure prevention initiative for it naivety and not being founded on sound economic principles.  However, the federal government remains optimistic about the plan and has been issuing updates on its progress.  The government has proudly reported during the first week of October 2009 that the plan has accomplished a milestone that has been originally projected for the first week of November 2009.  The program’s target of more than 500,000 homeowners getting home loan modifications has been reached almost one month early.  Therefore, it is possible that the Barack Obama foreclosure prevention initiative may finally work after all. To learn more about the foreclosure process stop by http://rismedia.com

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