President Obama brought his stimulus plan for invigorating the real estate market to the United States public in early 2009. This was one of the first things he did after being sworn into office. Part of this plan was the Mortgage Modification Plan that allowed qualified homeowners to rework their mortgages in order to avoid foreclosure. So, how has the program worked so far?
After around a year, the Obama Administration evaluated the success of the entire home stimulus plan, including the modification funding. Over a million modifications have been done to save homeowners an average of $500.00 monthly on their mortgage payment. Before the program ends on December 31, 2012, it is estimated that 3-4 million people will save their homes and get lower house payments.
The government has been less than pleased with the slow pace that the lenders were granting modifications. The overwhelming response from homeowners was not expected, and banks were quite backlogged with applications. The efficiency of the process has improved, but it is still necessary to be persistent in obtaining help.
The government has recently issued funds to help the areas of the country that have been hardest hit by the poor economy. These funds will be used at the discretion of Housing Servicers to prevent foreclosure in the way that suits the needs of their locale.
There is a program called HAFA, or Home Affordable Foreclosure Alternatives. This program was enacted in April 2010 to help those that are turned down for assistance through the Mortgage Modification Plan.
Mortgage Modification Plan - Recent News
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