Obama Mortgage Plan: Ultimate Source Of Survival For The Homeowners
US president Obama has launched an aggressive mortgage plan with the objective of
helping 9 million homeowners who are struggling to pay back their home loan due to nations financial crisis.
The plan is tailored to assist homeowners whose mortgages go above the value of actual home price and for those who are not able to pay their monthly installments of loan. As per Obama mortgage plan, $75 billion has been sanctioned by the government to cut the home payments of various homeowners. $200 billion has been approved from the Treasury Department for the purpose of purchasing preferred stock in Fannie Mae and Freddie Mac.
Through this plan, Obama intends to help around 9 million homeowners. Further this plan would enable 4 to 5 million homeowners to refinance their home loans at lower interest rate. This plan also liberates Fannie and Freddie from all restrictions of refinancing mortgages. For the remaining 3 to 4 million targeted homeowners, who are at the verge of losing their homes would be provided incentives to reduce the monthly payments.
However, according to Obama this plan would not rescue any person who made risky investment for his/her home for the purpose of resell. This plan is also not apt for the deceitful lenders who gave the false information to get loans approved.
Moreover, this Obama mortgage plan conveys very transparent guidelines for all mortgage industries that encourage lenders to transform mortgages on primary residence. Furthermore, if any institution wants to receive financial assistance from the government, and also wants to modify home mortgages, it will have to follow the guidelines mentioned in the plan.
The ultimate objective of this plan is to enhance the financial condition and morally boost up the homeowners and the mortgage giants Fannie Mae and Freddie Mac.