Obama Administration presents Home Loan Modification program the best way to foreclosure

April 1, 2010 - PRLog -- What we call the "financial crisis" has created a large number of problems for the housing market and particularly for mortgage holders.

• Families who make every effort to cover their monthly payments and handle their obligations have seen their property values rapidly decline. Now they can't refinance at lower mortgage rates unless they use a process known as mortgage loan modification or simply loan modification.

• People who have been employed for years have lost jobs or had hours cut back. They are now struggling to stay current on their mortgage payments. Right now almost 6 million households are facing potential foreclosure.

• Neighborhoods, particularly inter city and new developments, are also struggling, as every foreclosed home reduces nearby property values by as much as 9 percent.

Check If You Qualify for Obama's Loan Modification Plan >>  http://www.refinanceitt.com/loan-modification-application.php

The Homeowner Affordability and Stability Plan is part of the President's broad home loan modification plans to get the economy back on its feet. The plan helps many homeowners on the verge of defaulting and also helps neighborhoods and communities. The key elements of the Homeowner Affordability and Stability Plan are:

1. Affordability: Providing Low-Cost Refinancing for Responsible Homeowners who are victims of Falling Home Prices. A modify mortgage is now available to a great many more people.

2. Reducing Monthly Payments: For many families, a low-cost home loan modification could reduce mortgage payments by thousands of dollars per year:

3. Stability: Create a $75B plan helping around 3 to 4 Million Homeowners

Other Important Things That Are Accomplished Include:

• No Aid for Speculators: This initiative will goes only to helping homeowners who commit to make payments to stay in their home – it will not aid speculators or house flippers.

• Protecting Neighborhoods: This plan helps hold steady home prices for all homeowners in a neighborhood. The average homeowner could see their value stabilized against declines in price by as much as $6,000, according to some experts.

• Providing Support for Responsible Homeowners: Because a loan modification is more likely to succeed if made before a borrower misses a payment, the plan will include households at risk of default while still being current on their mortgage payments.

• Providing home loan modification to reduce monthly payments: The Homeowner Stability Initiative has a goal to reduce the amount homeowners owe per month to workable levels.

"Pay for Success" Incentives to Loan Modification Servicers who will receive an up-front fee of $1,000 for each eligible loan modification meeting guidelines established under this initiative. They will also receive "pay for success" fees – awarded monthly as long as the borrower stays current on the loan – of up to $1,000 each year for three years.

Incentives to Help Borrowers Stay Current there will be an incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.

• Institute Clear and Consistent Guidelines for Loan Modification: Treasury will develop uniform guidance for loan modification ( http://www.refinanceitt.com/loan-modification/ ) working closely with the bank agencies...

Allow a judicial loan modification Bankruptcy for borrowers that don't have another alternative.

Provide $1.5 Billion in relocation and other assistance to renters displaced by foreclosure. Also provide $2 Billion in Neighborhood Stabilization Funds

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