The crux of he foreclosure avoidance plan of the President is to obtain 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. To be accepted under this initiative of the Barack Obama foreclosure avoidance program, the loan balance of the homeowner should not be more than 105 percent of the property’s present value. Meanwhile, the second component is geared towards encouraging the banks to give the go signal for loan modification applications to make the monthly payments more affordable by not exceeding 31 percent of the borrower’s monthly salary. Lastly, the Barack Obama foreclosure prevention plan has given 0 billion to Freddie Mac and Fannie Mae to allow them to provide more home loans.
The Barack Obama foreclosure prevention initiative, which is better known as the Making Home Affordable Program, has made a slight progress in its attempts to assist borrowers in their efforts to get out of the foreclosure trap in the face of decreasing home values and rising unemployment rates. 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. It is believed that the Barack Obama foreclosure prevention initiative has caused home values to stop dropping and the slow down in foreclosure rates in a number of states. Nevertheless, many people still point out that only a slight percentage of those who should have qualified for home loan modifications have gotten the approval of banks.
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 government has proudly reported during the first week of October 2009 that the plan has accomplished a milestone that has been originally projected for 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. Therefore, it is possible that the Barack Obama foreclosure prevention initiative may finally work after all. To learn more about the foreclosure process stop by http://rismedia.com
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