Want to learn more about the Barack Obama Home Mortgage Plan 2009, otherwise known as the Obama Loan Modification Plan? Here is some information that explains how it works.
Many Americans are struggling to pay their mortgages and foreclosure rates are extremely high. To combat this problem, Obama's Mortgage Relief Plan unveiled his mortgage relief plan. This was supposed to help thousands of families lower their mortgage payments and keep their homes, but is it? Well, yes, if you know how to get qualified. The paperwork is kind of confusing for the average person and even if you understand all the questions properly, you might not fill it out right...
I think sometimes, people want to keep their homes so bad that they think they have to lie on their lenders application. They either put their income too low (most common) or too high and end up getting denied. The place you want to be is generally a couple hundred dollars in positive cash flow each month on your income and expense sheet. But, there are many tricks to figuring this out the right way. It involves taking your current payment, doing some quick math and figuring out where your lender wants to see your income. If you put your income too low on the forms, your lender will assume that you are headed straight for a foreclosure because you won't be able to make your mortgage payments even if they are lowered.
The Obama mortgage bailout plan now offers an incentive to banks that help you stay in your home. This is almost like a polite request from the Government, intervening on your behalf with stimulus money.
This program will not only keep you in your home, but will also include an additional $1,000.00 reduction in mortgage payments that may extend into the next five years.
The Obama mortgage refinance plan also allows home owners to make mortgage payments that equal about 38% of their current income. For many Americans who have been struggling to make ends meet now can be put into a situation that can keep you secure. The result is that families don't have to make choices about whether they will put food on the table or a roof over their heads.
We will continue to see soaring unemployment rates and high levels of unemployment for a long time. This is despite the optimistic comments made by Fed Chairman Ben Bernanke earlier this week.
Will the Plan Help as Many as 9 Million Home Owners?
The second objective of the Obama Mortgage Relief Plan is to help up to 9 million families either restructure their loans or refinance them.
I feel that those projections are far too optimistic.
I say that for two reasons. First of all, a high percentage of homes sold during the bubble years were purchased as second homes or as investment property. According to the National Association of Realtors, 40% of existing homes sold during the peak year of the bubble (2005) were purchased by those two groups. Of course, those two groups are excluded from any relief under the plan.
Here is the second reason why I feel that the projections of the Obama Mortgage Relief Plan are too optimistic. Certain areas of the country have been hit the hardest by the bust in the real estate bubble. In those areas, home prices have fallen so much that many of those home owners will not qualify for the 105% loan to value maximum refinance standard required in Obama's plan.
Like every other mortgage modification before, some lenders and some borrowers will avoid foreclosure. Many will not be helped. The plan is not a magic bullet - not a cure all.
Soaring unemployment rates and high unemployment levels will be with us for a long time. Having a strong backup plan and obtaining internet network marketing training, while holding onto your job, is a sensible approach in these difficult economic times.
Scott Hubbard has retired from 25 years as a Chief Financial Officer in Corporate America. He now enjoys teaching corporate executives and network marketers how to apply attraction marketing online [http://www.The-Pathway-To-Success.com] and how to generate free qualified MLM leads on the internet.
Many Americans are struggling to pay their mortgages and foreclosure rates are extremely high. To combat this problem, Obama's Mortgage Relief Plan unveiled his mortgage relief plan. This was supposed to help thousands of families lower their mortgage payments and keep their homes, but is it? Well, yes, if you know how to get qualified. The paperwork is kind of confusing for the average person and even if you understand all the questions properly, you might not fill it out right...
I think sometimes, people want to keep their homes so bad that they think they have to lie on their lenders application. They either put their income too low (most common) or too high and end up getting denied. The place you want to be is generally a couple hundred dollars in positive cash flow each month on your income and expense sheet. But, there are many tricks to figuring this out the right way. It involves taking your current payment, doing some quick math and figuring out where your lender wants to see your income. If you put your income too low on the forms, your lender will assume that you are headed straight for a foreclosure because you won't be able to make your mortgage payments even if they are lowered.
The Obama mortgage bailout plan now offers an incentive to banks that help you stay in your home. This is almost like a polite request from the Government, intervening on your behalf with stimulus money.
This program will not only keep you in your home, but will also include an additional $1,000.00 reduction in mortgage payments that may extend into the next five years.
The Obama mortgage refinance plan also allows home owners to make mortgage payments that equal about 38% of their current income. For many Americans who have been struggling to make ends meet now can be put into a situation that can keep you secure. The result is that families don't have to make choices about whether they will put food on the table or a roof over their heads.
We will continue to see soaring unemployment rates and high levels of unemployment for a long time. This is despite the optimistic comments made by Fed Chairman Ben Bernanke earlier this week.
Will the Plan Help as Many as 9 Million Home Owners?
The second objective of the Obama Mortgage Relief Plan is to help up to 9 million families either restructure their loans or refinance them.
I feel that those projections are far too optimistic.
I say that for two reasons. First of all, a high percentage of homes sold during the bubble years were purchased as second homes or as investment property. According to the National Association of Realtors, 40% of existing homes sold during the peak year of the bubble (2005) were purchased by those two groups. Of course, those two groups are excluded from any relief under the plan.
Here is the second reason why I feel that the projections of the Obama Mortgage Relief Plan are too optimistic. Certain areas of the country have been hit the hardest by the bust in the real estate bubble. In those areas, home prices have fallen so much that many of those home owners will not qualify for the 105% loan to value maximum refinance standard required in Obama's plan.
Like every other mortgage modification before, some lenders and some borrowers will avoid foreclosure. Many will not be helped. The plan is not a magic bullet - not a cure all.
Soaring unemployment rates and high unemployment levels will be with us for a long time. Having a strong backup plan and obtaining internet network marketing training, while holding onto your job, is a sensible approach in these difficult economic times.
Scott Hubbard has retired from 25 years as a Chief Financial Officer in Corporate America. He now enjoys teaching corporate executives and network marketers how to apply attraction marketing online [http://www.The-Pathway-To-Success.com] and how to generate free qualified MLM leads on the internet.
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