The Obama’s mortgage relief plan has a variety of programs to help homeowners out of different mortgage problems. Home Affordable Refinance Program (HARP) is for borrowers who are not behind on their mortgage payments but have been unable to get traditional refinancing because the value of their home has declined. HARP has been formulated to help you get a new, more affordable, more stable mortgage. This program is unique because normally lenders do not refinance underwater mortgages. With HARP, refinancing underwater mortgages become possible. To benefit from this particular Obama mortgage relief plan, you require a loan application and underwriting process. Also keep in mind that refinance fees will apply. There are some eligibility guidelines that need to be followed too.
Second Lien Modification Program for Federal Housing Administration Loans (FHA-2LP) is useful when a second mortgage is there and the first mortgage servicer agrees to participate in FHA Short Refinance. With such an agreement you may be eligible to have your second mortgage on the same home reduced or eliminated through the FHA Second Lien Program (FHA2LP). When your second mortgage servicer agrees to participate, he is agreeing to the condition that the total amount of your mortgage debt after the refinance cannot exceed 115 percent of your home’s current value. You many be eligible for this Obama mortgage relief plan if you can qualify for FHA Short Refinance and if you obtained your mortgage on or before January 1, 2009.
Making Available Obama’s Mortgage Relief Plan, A Top Economic Priority
FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance) is for borrowers having mortgages not owned or guaranteed by FHA, VA or USDA to refinance into more affordable, more stable FHA-insured mortgages. If you have been regular on your mortgage payments but owe more than your home is worth, this Obama mortgage relief plan may be an option that your mortgage servicer will consider. FHA Short Refinance has been put forth to help homeowners find a new, more affordable, more stable FHA-insured mortgage. When your current lender agrees to participate in this refinance, he is actually agreeing to reduce the amount you owe on your first mortgage to no more than 97.75 percent of your home’s current value.
Obama’s mortgage relief plan has tried to bring the benefit of refinancing to maximum homeowners. When refinancing is opted for, borrowers look for low cost plans to manage a regular monthly saving. This amount can either be invested for a worthwhile project or can be utilized to pay-off debts. At www.mortgage-refinanceprograms.com there are a number of experts guiding about the very same programs, to help borrowers accrue maximum benefit according to their individual situation.
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