Making Home Affordable With Obama’s Home Loan Modification
Officially called the MHA Plan or Making Home Affordable Plan is Obama Loan Modification plan. This mortgage loan modification plan is likely to aid 9 million homeowners to keep their homes. In order to see if you qualify for the MHA Plan, read on.
One of the very first things to qualify for Obama Home Loan Modification plan, make sure that your mortgage is insured by either Freddie Mac or Fannie Mae. At present, these are the only loans that are entitled for MHA plan. In addition to that, your home should be your primary residence.
Once you meet the above criteria, the loan modification plan gives you options. You can go in either for a mortgage refinance or a home loan modification. Applicants who are current on their mortgage payments and have a loan balance less than 105% of the present value of the home are qualified for a refinance. If you are lagging behind on any payments, refinancing is not an option for you.
But don’t you worry. Obama’s home loan modification plan is also to aid individuals experiencing financial difficulties with their mortgage payments. Mortgage loan modification under the MHA plan is for both, those who are current on their payments as well as those who are lagging behind. You must own the primary residence and have a monthly payment greater than 31% of your gross monthly earnings.
The MHA plan is for homeowners who are in the danger of losing their homes. They will be offered assistance by modifying the terms of their loan so that their monthly payments become more affordable. After the loan modification is accomplished, borrowers have a “trial run” of 3 months to make sure that the new payment plan and loan terms are actually working for them. After three months of timely payments, the new mortgage terms will be set for five years. Obama’s home loan modifications plan and the MHA plan is proposed to end the flood of foreclosures upsetting the nation’s economy and to keep millions of American families from losing their homes.
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