Key points in the Making Home Affordable Program
Many homeowners in the US are underwater with their mortgages, according to US Treasury, which runs the Making Home Affordable program. The administration wants to offer economic relief to property owners through refinances which will reduce the likelihood of default and boost consumer spending. One example of this would be in Las Vegas, Nevada, which was one of the hardest hit areas to be affected by the mortgage turmoil. With so many people facing a financial hardship with their mortgages the US administration decided to provide comfort to property owners who are under the sea on their loans. The new rules that were put forth for homeowners, only relates to property owners who are current on the house loan repayments and are seeking to refinance out of their high price loans to lower price loans.
The new plan will require regular tracking by the government. Many people have questioned will the regulations for the government refinance turn out to be extremely restricted or will financial institutions pad up the new loans with increased financial institution charges. There are only certain types of homeowners who will be approved for relief? Those are homeowners, who have a home loan owned by Freddie Mac and Fannie Mae. The qualifications are that the homeowner has to be current on the home loan; and have not skipped a payment in the last six months and have not had more than one overdue in the past year.
Other Loan Programs
If you do not know what type of home loan you have, go to the treasury.gov website. The treasury.gov website will provide assistance to help you learn about the different housing mortgage programs. Some examples of the other mortgage programs are, the Principle Reduction Alternatives (PRA), FHA-Home Affordable Modification Program (FHA-HAMP. If you have a home loans with the VA or USDA there is information to provide mortgage relief as well.
The Future Economic Climate
By taking the options of offering home loan modifications to property owners, this will reduce non-payments and home foreclosures. Reviews have shown that the real restoration, in the housing industry and in this economic climate, will require reducing the loan balances on the sea of under water loans. Will this new home loan comfort regulation prevent or get rid of the rise of foreclosures?