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.  The program’s next component has the purpose of encouraging the banks to accept applications for home loan modifications from homeowners to bring down their monthly payments to at most 31 percent of the salary that they receive every month. 

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.  According to statistics that have been revealed during the last week of September 2009, the plan of the President appears to be working at last.  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.  However, many people still criticize the government’s program because very few of the homeowners whose loan modification applications should have been approved are not yet in the program.

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 Administration has proudly declared during the first week of October 2009 that they have finally reached a milestone that they thought would only be accomplished by 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.  It is therefore too early to disregard the Barack Obama foreclosure prevention program and call it a failure. To learn more about the foreclosure process stop by http://rismedia.com

Be Sociable, Share!

•