Digital News Report – President Barack Obama has outlined a new strategy to help keep homeowners in their homes and to provide alternatives to foreclosure. The new “Making Home Affordable” plan is administered by the Housing and Urban Development (HUD) Department and is designed to keep homeowners in their residences.
Homeowners can request a loan modification and locate other resources at the government website. Neither the banks nor the federal government want to see homeowners lose their home.
The program is designed to help homeowners who are underwater and owe more than their house is worth. They may be unable to refinance their mortgage.
The initial program had flaws which made it very limited. Changes were made to make it more flexible.
Here are some of the goals:
1- Help homeowners modify their existing home loan.
2- Help homeowners with modifying their second lien on their property
3- Help with alternatives to foreclosure including short-sales and HAFA Deed-in-Lieu of Foreclosure
HAFA (Home Affordable Foreclosure Alternatives Program) is designed to help homeowners who can not modify their loans.
The downturn in the economy has lowered housing prices, increased unemployment and slowed the sale of homes. This program is meant to help alleviate some of the problems.
By: Tina Brown