The Obama foreclosure prevention plan has the goals of increasing the number of refinanced home loans, boosting the number of available home loans for first-time home buyers, and motivating banks and lenders to agree to more loan modifications.  President Barack Obama had signed into law in May 2009 the Helping Families Save Their Homes Act that serves the primary foundation for the plan.  This law was created to add to the anti-foreclosure strategies of the Hope for Homeowners Act that was previously issued to help homeowners with remaining loan balances that were bigger than the current market value of their homes.

The Obama foreclosure prevention plan helps borrowers in getting the banks and other lending institutions to agree to their loan refinancing proposals to bring down their monthly installments to more affordable amounts.    The initiative of the President also offers bonuses to banks and lenders if they agree to a loan modification that will decrease the monthly installments to a value that will not exceed 31 percent of the borrower’s monthly income.  Fannie Mae and Freddie Mac will also be able to offer a greater number of home loans for first-time home buyers because the Obama foreclosure prevention plan has added to the funding of these two corporations.

Unfortunately, the critics of the Obama plan quickly grabbed the chance to pick apart the initiative when it failed to make a noticeable effect on the housing crisis in September 2009.  However, those who like the Obama foreclosure prevention plan answered back by pointing out that it had started to have some positive results.  For example, the plan seems to have been the major cause of the reversal of the declining trend in home market prices and the rise in the number of foreclosure filings in a number of states.  In response, critics of the President’s program countered that only a small number of the borrowers who should have been qualified to get their loans modified had benefited from the program.  Some opponents also pointed out that the Obama foreclosure prevention plan should have been based on acceptable economic principles.  Nevertheless, members of the federal government remain upbeat about the program and have pointed out that it has reached a milestone in the number of loan modifications that have been approved by the banks.  The members of the federal government are sure that the President’s anti-foreclosure strategy will accomplish what it has sought out to do and they continue to report to the public about the project. For alternative funding plans stop by http://hardmoneylendersonline.com

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