Obama’s Loan Modification Program
Assistance For Homeowners Facing Bank Foreclosure: The Homeowner Stability Initiative
The current economic recession, which began in December 2007 according to the National Bureau of Economic Research, has created grim conditions for some homeowners and neighborhoods throughout the country.
On February 18, 2009, President Barack Obama unveiled the Homeowner Affordability and Stability Plan, a $75 billion dollar program intended to assist homeowners facing bank foreclosure. The loan modification plan promised to “help between seven and nine million families restructure or refinance their mortgages,” Obama said. Funded by the second half of the $700 billion Troubled Asset Relief Program bailout plan authorized by Congress in October, the Homeowners Stability Initiative fulfills a TARP provision for homeownership preservation by implementing loan modifications.
President Obama said the Homeowner Affordability and Stability Plan “will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy. The goal of this loan modification program is to bring down the foreclosure rate, and it should help to shore up housing prices for everyone.”
The plan had three main goals:
- Providing access to low-cost loan modification for responsible homeowners
- A $75 Billion Homeowner Stability Initiative to assist between 3 to 4 million homeowners in danger of bank foreclosure
- Strengthening Fannie Mae and Freddie Mac to support low mortgage rates and confidence in the housing market
The Treasury Department was to develop guidelines for Fannie Mae and Freddie Mac and all lenders that receive financial assistance from the government, enabling as many as 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac in danger of bank foreclosure to request loan modification and refinance their mortgages.
How did the Loan Modification work in your area?
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My Loan Modification was a joke. I don’ t blame the President but big business: Brokerage Houses, Banks, Lenders and political bait and switch measures that continual let the system fail. This is due to the continuum to provide for those who are financially stable to prosper even more; even when the President, treasury and laws were provide to assist those in need. Case in point: Litton Loans Servicing. Read the Blogs concerning this Crook. I would really like to see how a company gives a Loan Modification and then a week later cancels the negotiations and moves to foreclosure? I would like to see answers to the President’s program to a assist those with Hardships by these companies who turn their backs. I for example had over 7 hardships after serving in U.S Justice for 31 years. Shame, Discuse, Down Right Pitful how the parallels of time 1920’s are that of 2020’s.
Robert,
I appreciate your disenchantment with the system in general. It seems that whenever the Federal Government provides assistance that assistance gets hijacked by the same people that create the problem in the first place.
I do know personally of several people that have had success with loan mods but they are far and few between. From what I know about the details of successful loan mods, the bank has to be better off helping you or the help will not be available to you. Perhaps the program should have been named “Bank Assistance Program” Each bank is different and each situation is different. I have known of people that had to quit/lose their jobs for a time in order to save their home. It is terribly frustrating and if nothing else I am writing to let you know that you are not alone. I am sure that is of little consolation but it is important that we don’t feel like the only ones receiving the short end of the stick.
My heart goes out to you and I wish you the best. When I am in a tough spot I try to remember and repeat to myself “This too shall pass” Sometimes it helps me sleep.
I do not know anyone in my district in Hawaii that got qualified under Obama Loan Modification
Barbara,
I understand and know of very few success stories. I don’t live in Hawaii but the rules that apply in your state apply across the rest of the country. As I stated above I know several people that have indeed qualified for loan modifications.They had to adjust their lives to take advantage of the programs that are offered. I am no fan of the programs and feel that they are poorly designed for the people that they are trying to help. Of the people that I do know that were successful, none of them had success until they found a professional that could help them navigate the many pitfalls. Like most programs that are poorly designed, they get poor results.
The issue of who can help is a another problem as too often those that offer it cannot provide it.
Barbara,
We are a direct lender to Fannie and Freddie and servicer of many loans in the state of Hawaii. We have had great success with the HARP refinance program there. If the loan qualifies by date the borrower will have a great chance of success. If you would like to see if you or any friends qualify please email me david@1st2ndmortgage.com or call 1-800 LOAN HOME ext. 242. Hope to hear from you.
Aloha, David:
Wow, I didn’t expect this quick response. there have been a lot of borrowers who has lost their homes and couldn’t qualify? The banks and their servicers gives us the run-around, constantly asking for the same documents and then announces all do not qualify? I have repeatedly asked our US Congress reps to send us information and no response. I am a self employed paralegal who handles 6 persons three involved in court foreclosure proceedings and three handling loan modifications. I have learned that Hawaii was involved with other States and WON against the banks in the million, and somehow did not reach the very borrowers who directly suffered. Do you know what ACT/BILL in Congress was the OBAMA help for loan modification.