Understanding Obama’s Making Home Affordable REFINANCE plan

Last week the US Treasury Department released some of the guidelines for the “Homeowner Affordability and Stability plan;” however, the details for refinances and modifications created some confusion even among the professionals in the real estate industry.

[Update April 28, 2009: Home Affordable Refinance Program (HARP) is extended to June 30, 2011]

Much of the confusion came from the belief that the refinance and modifications under “Making Home Affordable” (MHA) program were one of the same.

To make matter worse, loan modification “so called experts” are yapping on the radio and TV spots telling everyone that this plan won’t work or that they can qualify clients directly with their lenders for a fast approval.

Well, of course they are going to say that!

It is in their best interest to keep homeowners ignorant about the “Making Home Affordable” programs and keep charging them illegal upfront fees for modifications.

MAKING HOME AFFORDABLE REFINANCE

Looking at the “Making Home Affordable Refinance,” it will provide Read more

March 10th, 2009 · Filed Under Foreclosure-Short Sale Information, Loan Modifications

Comment

Understanding Obama’s Making Home Affordable MODIFICATION plan

Yesterday, the Treasury Department released some of the detailed guidelines for the “Homeowner Affordability and Stability Plan.” The plan includes $75 billion in incentives for lenders to modify the loans of struggling homeowners which will run through December 31, 2012. These incentives are under the “Making Home Affordable Modification” program.

[Update April 28, 2009: The inclusion of second mortgage loan modification within the MHA modification plan has been added]

MAKING HOME AFFORDABLE MODIFICATION

The “Making Home Affordable Modification” is not mandatory for all investors and mortgage services/lenders; however, it will serve homeowners as an incentive for loan servicers/lenders to generate loan modifications. Nevertheless, financial institutions that accept future “bail out” funding from the Treasury’s Financial Stability Program must participate in the “Making Home Affordable” (MHA) program.

Servicers who decide to participate will Read more

March 5th, 2009 · Filed Under Foreclosure-Short Sale Information, Loan Modifications