Stop Foreclosure

For The American Homeowner

Obama’s Plan: Make Home Affordable Loan Modification (3 of 3)

The Make Home Affordable Plan has two primary components or two primary programs. The two sides are Obama’s loan modification program and Obama’s mortgage refinance program (known as HARP).

This post will focus primarily on the loan modification side of things.

Make Home Affordable Loan Modification – HAMP

Many Homeowners have experienced some hardship that has changed the financial outlook of the household budget for what ever reason. Examples of common financial hardships can be found in the list below.

  • Loss of job due to employer cut backs
  • death of a family member
  • divorce
  • medical injury or accident
  • etc

Sometimes a homeowner is unable to make the agreed upon payment of their mortgage. In cases such as these the borrower will often look towards their lender for help. many times a loan modification is seen as the best solution to the troubled mortgage asset.

The Make Home Affordable Plan has a section of the plan dedicated to loan modification. This program is now often refered to as HAMP, Home Affordable Modification Program. The Make Home Affordable Loan Modification Plan has the following guidelines.

  • The mortgage payment must be unaffordable for the Homeowner under the current mortgage agreement
  • The adjusted payment or modified payment must be in the range of 31%-38% of the homeowners budget
  • The property must be for the Homeowners primary residence
  • This plan is not for speculators
  • This plan is for Homeowners who are no more than two or three or so payments behind.
  • It is ok if the Homeowner is in foreclosure

Obama’s mortgage help  plan will help American homeowners make home affordable and many of the programs are starting to look as if they will prove be a success!

I give a large part of this success to the wise part of incentive it has given the lender. The mortgage lenders ar given a commission on each loan that they are able to modify.

This was originally supposed to be the third and last post of a three post series on Obama’s efforts to make home affordable but there are new and exciting developments that have surfaced such as a new program and part to the Making Home Affordable Plan that was announced on June 23rd 2010 by President Obama. He unveiled a program called the Hardest Hit Fund which is a program that will help those folks who live in the five states most effected by the financial hardship and housing crisis. i will post on the details of this new program as well as the other smaller yet still important and useful assistance programs that also make up a portion of the Making Home Affordable Plan.

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June 24, 2010 - Posted by | finance

6 Comments »

  1. Hey very informative post. i really like what your doing here. Keep up the good work!

    Till next time…

    Foreclosure hope

    Comment by Foreclosure Hope | May 9, 2009 | Reply

    • Thanks so much I appreciate the kind words feel free to contribute any time.

      Comment by hope002 | May 31, 2009 | Reply

  2. The Making Home Affordable Loan Modification is most likely the most effective method for Homeowners to obtain a loan modification to stop foreclosure

    Comment by Stop Foreclosure With Loan Modification | June 1, 2009 | Reply

  3. […] the Home Affordable Modification Program has helped over a million American homeowners obtain a lower monthly mortgage payment and thus […]

    Pingback by Hope For The American Homeowner « Stop Foreclosure | June 28, 2010 | Reply

  4. […] NOW and the Making Home Affordable Programs known as HAMP and HARP are creating some much-needed and sought after foreclosure […]

    Pingback by Foreclosure Hope: Reference of Hope to Struggling Homeowners « Stop Foreclosure | July 14, 2010 | Reply

  5. […] we can all hold this momentum and stay with Obama on his Making Home Affordable Loan Modification that he has pushed hard on, then we may very well be on are way back up. Let us […]

    Pingback by Foreclosure Sales Drop – 4 Month Trend « Stop Foreclosure | July 14, 2010 | Reply


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