The Obama Mortgage
What You Should Know About This Program?
The U.S. government has created several programs aimed at helping borrowers in financial trouble avoid foreclosure, stay in their homes, and make their mortgage payments more affordable. Some use a catch-all term, “Obama mortgage” to describe one or more of these programs. What is an Obama mortgage? How does the government offer help to borrowers who are worried about their mortgage payments?
The term “Obama mortgage” has, for better or worse, been applied by some to one or more of the following. You’ll find that there’s one program that’s directly referred to as an Obama mortgage-the Making Home Affordable program.
The official government website for Making Home Affordable has a list of options for borrowers who need mortgage help. Choosing the right program depends on your needs. Here’s a list of the programs found at the Making Home Affordable Website:
The Home Affordable Modification Program (HAMP)
This program is described on the official site for borrowers who want to lower monthly mortgage payments, "making them more affordable and sustainable for the long-term".
The Home Affordable Refinance Program (HARP)
The HARP program is for homeowners who are current on mortgage payments but, “have had difficulty refinancing”. The official site says that even for borrowers who are “underwater” on their mortgages (owing more than the home is currently worth on the housing market), if mortgage is owned by Fannie Mae or Freddie Mac, HARP could be of assistance.
Home Affordable Foreclosure Alternatives (HAFA)
According to the official website, HAFA “provides homeowners the opportunity to exit their homes and be relieved of their remaining mortgage debt through a short sale or a deed-in-lieu of foreclosure (DIL). It also provides homeowners with $10,000 in relocation assistance”.
Home Affordable Unemployment Program (UP)
This program is designed to temporarily lower or suspend a qualifying borrower’s monthly mortgage payment, “giving you some much needed breathing room while you search for your next job” according to the official site.
Each of these programs has specific criteria borrowers will need to meet in order to qualify. Some programs require you to be current on your mortgage and apply before missing payments, etc. Othes may be available for those who have fallen behind on mortgage payments. Some of these programs will help borrowers keep their homes and stay in them, while at least one is designed as a short sale/foreclosure avoidance plan.
You can view specific details of these programs and more at the Making Home Affordable official site.
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FHA Loan Articles and Mortgage News
July 5, 2012 - The Department of Housing and Urban Development says FHA/HUD approved housing counseling is an important option for families who purchase their first homes and those struggling to prevent foreclosure.
August 9, 2011 - Missing a single payment isn't necessarily the road to foreclosure, but it's crucial to act quickly to stay far away from issues related to FHA loan default and/or foreclosure proceedings. This advice also applies to FHA HECM loans.
March 31, 2011 - The 203(k) loan program provides qualified borrowers with an FHA guaranteed loan for rehab homes. This loan is for those who want to live on the property to be improved as the primary residence, it's not meant for landlords or investors.
January 5, 2011 - Home Equity Conversion Mortgages or FHA HECM loans for short, are for borrowers aged 62 and older who want to take advantage of the equity built up in their homes.
January 5, 2011 - In 2009, the The Making Home Affordable program was introduced to help struggling home owners avoid default and foreclosure on their home loans, including FHA mortgages and equivalent programs for VA home loans.
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