President
Obama overcame quite a lot to pass and sign into law, the most sweeping
financial reforms since the Great Depression and established a new supervisory
body to enforce the strongest consumer protections in history. Obama universal
mortgage refinance program actually brought in reforms that hold Wall Street
accountable. It ensures that responsibility is rewarded and everyone plays by
the same rules, universally. HARP(Home Affordable Refinance Program), as it is
better known, has been a vital part of the Obama Administration’s all-inclusive
effort to provide relief to families facing the risk of foreclosure for their
homes. It is also further expected to help the housing market recover from a
historic housing crisis.
Homeowners
who are striving to hold on to their homes, in a situation where home ownership is increasingly becoming unaffordable, can very well benefit from this Obama
mortgage refinance program. Even after failing to get conventional refinancing,
inspite of being regular on mortgage payments, they can apply for HARP 2.0
of MHA(Making Home Affordable) program. HARP
refinance was designed to help borrowers across the country to refinance for a
better, more affordable loan plan, when refinancing was beyond their reach due
to the declined home value. The Obama administration effected some changes to
its eligibility guidelines to make it more feasible for a greater number of distressed
homeowners.
Obama Mortgage Refinance Program allows
borrowers to refinance even when they are in the deep with underwater mortgages.
This would allow a borrower to make payments that are more compatible with the
present valuation of the home. Moreover, the monthly repayment plan would be
more in accordance with the repayment capacity of the borrower.
While
applying for a refinance, some guidelines that apply to this program should be
borne in mind. To qualify for the program,
o
Freddie Mac or Fannie Mae should own
and back the present loan.
o
Fannie Mae or Freddie Mac should have
taken responsibility for your loan on or before May 31, 2009.
o
The mortgage shouldn’t be a HARP refinanced
one, unless it is a Fannie Mae loan that was refinanced under HARP from
March-May, 2009.
o
The ratio of the amount of the loan to
the value of property (LTV ratio) must be greater than 80%.
o
The payment history of the past 12
months should be impeccable.
The
eligibility criteria and benefits for the plan can be better understood with
the help of expert guidance. Some websites have lots of resources in the form
of competent professionals and experts of this field.
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