Questions Arise About Home Loan Program


A recent report from the US government said that the nation now has a total of 230,000 households whose loan modifications were now completed. This was made possible by an addition of 60,000 homes which benefited from the house loans program launched by the Obama administration which encouraged banks and financial institutions to lower monthly dues for home loaners.

However, this Federal program for home loans has been receiving varying degrees of questioning. The completed loans were counter balanced by the 66,000 dropped out borrowers. The effectiveness of the program is now being grilled and entities have been demanding to alter the program to account for the continuing foreclosures of homes. Back in 2009 alone, about 2.8 million foreclosure notices were distributed and handed to homeowners whose home loans have not yet been fully paid.

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Recently, in the aim of addressing such reform calls, the White House declared the key alterations to the federal program for home loans, HAMP, as it is popularly called. The so-called expansion of the program, expected to be effective in the following months, would include lender repayments with lowered mortgage principals. The extension is also said to cover for unemployed workers.

Critics, ever more hungry for something to be in opposition to the government, pronounced that the changes should be made quicker. They even gave more focus on some lenders to give more consideration to homeowners deep in debt to be given less interest for the worth of their house.

As obviously seen, the increasing unemployment rate and the poor housing market has greatly affected and contributed to the ability of homeowners to pay the home loan mortgages. This is what critics have been demanding the government to move more efficiently for and act upon accordingly.

The criteria which determines if a homeowner qualifies for HAMP modification are: borrower should be main home or residence of the home in question, the home's monthly mortgage repayment should not be lower than 31% monthly income for pre-tax, the loan sum should not exceed $729,750(the present loan limit for Freddie Mac loan and Fannie Mae), and of course the borrower is not able to make or afford the monthly repayment. If all these requirements are met, then the homeowner should start gathering all necessary documents and find out if the loan servicer is among the participating service organizations for HAMP. HAMP requires all Fannie Mae and Freddie Mac loan to participate.

Based on facts and figures, those Americans who are badly in need of assistance regarding principal mortgage reduction are the residents of the state of California. Such hopeless is the case of California home owners that even when the economy has already been stabilized, many would still remain deep in loans and debts.

So far, some banks have rejected what the program demands for while others, thankfully, have already complied. This also applies for North Park real estate and North Park homes for sale as the loan program applies to every single part of the United States.


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