What is the Obama Administration’s Home Affordability and Stability Plan?
By David Leibowitz, Illinois and Wisconsin Bankruptcy Attorney on Apr 15, 2009 in Mortgage Issues
Clients frequently ask if they can get a mortgage modification under the plans announced in March by President Obama. It’s confusing to say the least. President Obama’s mortgage modification and mortgage refinance plans are supposed to aid millions of home-owners. But like Goldilocks, you have to be “just right” to fit in these plans.
The umbrella for all of this is called the “Home Affordability and Stability Plan”
There are two components of this plan. The first is allowing some “Responsible Homeowners” the opportunity to refinance at better rates. I call this the Home Affordable – Refinance plan. The second is to allow other “Responsible Homeowners” the opportunity to modify their mortgages. I call this the Home Affordable – Modification Plan.
It’s going to take more than a few blog entries to explain this program adequately. However, for those who qualify, these programs can be very helpful.
It’s going to take a lot more than the programs proposed in order to put a floor on real estate prices which continue to fall rapidly. And there’s a critical missing piece here – that’s the hammer of mortgage modifications in bankruptcy. We still think that S 61 and H 1106 – the “Helping Homeowners Save their Home in Bankruptcy Act of 2009″ is vital to providing lenders the incentives they need to enter into meaningful modification agreements with ther lenders. To contact your Senator to support S 61, click here.
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