Wednesday, August 28, 2013

Obama Mortgage Refinance Plan 2013 - One Stop Solution for Struggling Homeowners



The Obama mortgage refinance program is a part of the making home affordable program that was initiated by the administration to bring about changes in the housing market and also in the lives of the homeowners. To reign in the cases of foreclosure nothing better could be sorted out than the making home affordable program and its sub-categories namely the Obama mortgage refinance program and the home affordable modification plan. Both the plans aimed at helping struggling homeowners get out of the rot and lead a stable life once again.


The main reason why homeowners needed help with their mortgage loan payments was due to unforeseen emergencies or external factors affecting their finances. Since, their monthly income is the only source from which they can pay for the mortgage loans it used to cripple the homeowners when they weren’t able to shell out the necessary cash or do so by compromising on other basic necessities. The Obama mortgage rescue plan catered to homeowners from different backgrounds including the one’s with an upside down equity in their homes. However, a slight difference between the home affordable refinance program and the home affordable modification program needed to be explained so that before applying for the specific deal one could be sure about its success. As per the Obama mortgage rescue plan wherein the mortgage loan refinance option was to be chosen the basic criterion of eligibility was that the homeowner should be updated and current with their original mortgage loan repayments. Defaulters on the mortgage loan were guided towards the home affordable modification program.


Despite the Obama Mortgage Refinance Program garnering a lot of support from all the homeowners there were a few who had no alternative but to avail the home affordable modification program due to an upside down debt to income ratio. The refinance program and its sub-categories catered to the needs of all types of homeowners and one example of a program that was introduced recently to help those homeowners who were responsible but were suffering from failing home prices to go ahead and secure low cost home affordable refinance plus program. The program catered to the homeowners under two categories namely the  Plus for manual underwriting and DU refi plus for loans underwritten through desktop underwriter.

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