<!DOCTYPE HTML PUBLIC '-//W3C//DTD HTML 4.01 Transitional//EN' 'http://www.w3.org/TR/html4/loose.dtd'>; <html><head><title>Article Directory Online : Free Online Article Submission - Articleonlinedirectory | Avoiding Foreclosure With The Obama Foreclosure Prevention Program</title></head><body><h3>Avoiding Foreclosure With The Obama Foreclosure Prevention Program</h3><br /><br />By: <br /><br /><p>The Obama foreclosure prevention program is tasked with increasing the number of allowed home mortgage refinancing applications, boosting the number of permitted loan modifications by banks and other lending institutions, and stimulating the offer of more new mortgage loans to those who are buying a house for the first time. <br /> <br /> This particular program has been given a boost by the approval of the Helping Families Save Their Homes Act by President Barack Obama in May 2009. This law is a follow through for the Hope for Homeowners Act that preceded the above legislation and it had the goal of assisting homeowners who were underwater in their mortgages.<br /> <br /> One of the major aspects of the Obama foreclosure prevention program is to aid homeowners in getting the approval of banks and other lending institutions for the refinancing of their loans to bring down their monthly payments and make it easier for them to avoid foreclosure. It should be noted, however, that a prerequisite for refinancing is a loan balance that is not greater than the current market value of the property by more than five percent. The Obama initiative also offers an incentive to a bank or lender every time an application for loan modification is allowed and decreases the monthly installment to a value that does not exceed 31 percent of the monthly income of the homeowner. By providing additional funds to Freddie Mac and Fannie Mae, the Obama foreclosure prevention program also encourages the provision of more loans to first-time home buyers.<br /> <br /> However, as of the third quarter of 2009, the Obama program has not yet made much of a dent on the housing problems. Thus, those who are against it quickly took advantage of the opportunity to present the results as evidence that the initiative will fail. On the other hand, those who favor the Obama foreclosure prevention program retorted by claiming that positive results are starting to become evident. Specifically, it is believed that it was instrumental in initiating a turn around in the rising number of foreclosure filings and the continuing downfall of home prices, at least in a number of states. <br /> <br /> But critics of the President's initiative countered that only a small number of the borrowers who should have been eligible for loan modifications had actually been given the chance. Some critics also noted that the Obama foreclosure prevention program was not founded on sound economic principles. Nevertheless, members of the Administration of the President continue to support the plan and have claimed that a milestone had been reached when the number of approved modifications had surpassed half a million.</p> <br /><br /><b>Author Resource:-></b> Brought to you by <a href=http://www.articlesbase.com/advertising-articles/eco-canteen-water-bottles-allow-you-to-kick-the-plastic-habit-1984890.html>Ecocanteen</a><br /><br /><b>Article From</b> <a href='http://www.articleonlinedirectory.com/'>Article Directory Online : Free Online Article Submission - Articleonlinedirectory</a><br /></body></html>
