Obama Foreclosure Help: What Critics Say

Obama foreclosure help is now available and it has the intention of providing more new home loans, causing a rise in the number of approved applications for loan refinancing, and pushing up the number of approved loan modifications by banks and other lending institutions.  It should be noted that the President obtained the funding for the Making Home Affordable Program that is designed to counter the escalation in the number of foreclosures and the continuing drop in home market values from the funds that have been set aside for the bailout of financial services companies. 

Here are the three key purposes of the Obama foreclosure help that is being offered.  The first aim is to assist homeowners in their attempt to obtain the approval of banks and other lending institutions for the refinancing of their loans so that they can benefit from lower monthly payments that are more affordable.  However, there is a requirement that the loan balance should not be in excess of 105 percent of the prevailing price of the home.  The second purpose of the President’s plan is to provide incentives to the various lenders if they approve a bigger number of home loan modifications with the goal of reducing the monthly payments so as not to exceed 31 percent of the homeowner’s monthly income.  The final aim of the Obama foreclosure help that is being offered is to ensure that Fannie Mae and Freddie Mac will be able to approve more new home loans.

The Making Home Affordable Program has not make much progress as of September 2009 and in fact, it has had some negative results, which critics had been quick to point out.  Nonetheless, those who are in favor of the provision of Obama foreclosure help argue that it is beginning to bear fruit.  These people claim that the plan was the reason for the reversal of the down trend in home values and the fact that the acceleration of foreclosure rates has mellowed down in some states.  However, some of those who disapprove of the President’s plan have pointed out that only a small percentage of applications for home loan modifications that have been approved by banks even if the homeowners were considered to be eligible.  Several of these critics do not believe that the Obama foreclosure help that is being provided will be successful because it has not been based on sound economic theories.  But Obama Administration officials continue to believe in the strategy of the President and they keep on informing the public about its various achievements.  As a case in point, the Treasury Department and the Housing and Urban Development Department have revealed that the number of trial loan modifications that have been approved has reached a milestone before its projected due date. Brought to you by Eco canteen.

More Stop Foreclosure Tips:

1. The Obama Foreclosure Rescue Initiative and How It Works
2. Effect of the Barack Obama Foreclosure Program on Homeowners
3. Revision of Anti Foreclosure Plan made by Obama Administration
4. Number of Foreclosure Homes Still on the Rise