AuthorsDen.com   Join (Free!) | Login  

     Popular! Books, Stories, Articles, Poetry
   Services MarketPlace (Free to post!)
Where Authors and Readers come together!

SIGNED BOOKS    AUTHORS    eBOOKS new!     BOOKS    STORIES    ARTICLES    POETRY    BLOGS    NEWS    EVENTS    VIDEOS    GOLD    SUCCESS    TESTIMONIALS

Featured Authors:  Sam Penny, iDr. Ulla Sebastian, iDavid Schwinghammer, iRegis Schilken, iSheri Hoff, iRussell Williams, iGina LoBiondo, i

  Home > Business/Investing > Articles Popular: Books, Stories, Articles, Poetry     

Dustin D Rohde

· Become a Fan
· Contact me
· Articles
· 13 Titles
· 1 Reviews
· Save to My Library
· Share with Friends!
·
Member Since: Jun, 2009

Dustin D Rohde, click here to update your pages on AuthorsDen.




   Recent articles by
Dustin D Rohde

The Early Stages of Foreclosure: Loan Modification Can Help
How Home Loan Modification Can Help Stop Foreclosure
President Obama’s Plan Needs Modification Itself
Faster Loan Modifications Needed
Short Selling Vs. Foreclosure
The 4 Stages of Foreclosure.
Why Foreclosure Should Be Your Last Resort
The 1st Steps in Avoiding Foreclosure
Home Abandonment Is Not The Answer
More Mortgage Shopping Tips, Less Dry Reading
Snippets of Mortgage Pre-Qualifying
Homeowners & Foreclosure Prevention
           >> View all

Obama’s Home Loan Modification Plan: An Explanation and A Small Critique
By Dustin D Rohde   
Not "rated" by the Author.
Last edited: Tuesday, September 15, 2009
Posted: Tuesday, September 15, 2009

Share    Print   Save    Become a Fan


President Obama’s Home Affordable Plan: HAMP (Home Affordable Modification Program) is a $75 billion initiative intended to help people afford their mortgages and stay in their homes

President Obama’s Home Affordable Plan:  HAMP (Home Affordable Modification Program) is a $75 billion initiative intended to help people afford their mortgages and stay in their homes.  One program it funds is a home loan modification program.   Lenders are encouraged to assist borrowers who are having trouble keeping up with their monthly mortgage payments.  These homeowners are facing foreclosure if no solution is found.

The banks are rewarded with $1000 for each home loan modification that they complete, so they ARE willing to help.  President Obama this had in mind when he came up with this plan. With government resources being provided, approved banks can modify a loan so monthly payments are more affordable.  This is done by extending the loan terms, lowering the rate of interest, removing late fees, and in some cases reducing the amount of the actual principal.  The lender can do any or eve all of these to insure qualified homeowners have an affordable house payment.

So how does the plan decide what defines an affordable house payment?  Each homeowner’s monthly gross income is totaled before any items (other expenses) are taken out. According to the HAMP program, an ideal payment is 31% of this gross monthly income or less.  To qualify for a HAMP funded home loan modification you must have a mortgage payment that is 31% of the gross monthly income or more.  When figuring the mortgage payment, the property insurance, taxes on the property and any homeowner association dues you pay can be included in this figure.

What you sadly can’t figure into account are any other payments you have.  Auto payments and insurance, costs of living, and credit card debt for example are totally disregarded by the equation.  It doesn’t take them into account and that is its shortcoming.  This plan is flawed.

Learn more about Loan Modification at Legal Loan Bailout

Web Site: Legal Loan Bailout



Want to review or comment on this article?
Click here to login!


Need a FREE Reader Membership?
Click here for your Membership!



The Landlord's Guide to a Successful Business by Nancy Neville

Everything you wanted to know about being a landlord but didn't know who to ask...  
Featured BookAds by Silver
Gold and Platinum Members


The Savvy Businessperson's Guide to Property & Casualty Insurance by Karin Fleischhaker-Griffin

An Insurance Reference for Everyone from a Businessperson to a Student or anyone who wishes to excel in the Insurance Industry. Knowledge is Power - The information in this book w..  
Featured BookAds by Silver
Gold and Platinum Members

Authors alphabetically: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Featured Authors | New to AuthorsDen? | Add AuthorsDen to your Site
Share AD with your friends | Need Help? | About us


Problem with this page?   Report it to AuthorsDen
© AuthorsDen, Inc. All rights reserved.