Undertake Thorough Research to Understand the making Home Affordable Eligibility Criterions!
The making home affordable program was introduced by the Obama administration to save millions of homeowners from the scourge of debt and foreclosure. The housing market suffered a major setback due to the financial dip during the recession and it created an empty space in the housing market and also led to a slowdown in the overall economy. In order to make home affordable programs more accessible to all the homeowners the administration took it in their hands to introduce flexibility in the programs and allow homeowners to actually benefit from it.
Home affordable refinance and home affordable modification were the two sub-categories under the federal making home affordable program. Not all homeowners could be eligible for the making home affordable refinance program and this was especially true for homeowners who had already defaulted on their mortgage loans and were now looking out for a way to get back on track and repay the home loan. For such homeowners the best plan was to avail the home affordable modification program wherein the original mortgage loan was replaced with a completely new loan at lower rate of interest. The making home affordable eligibility criterion was much more flexible and all encompassing than the previous programs used to be and so most of the homeowners could actually benefit from either one of the choices. As per the making home affordable eligibility criterion the most important point that had to be kept in mind was that the original loan should have availed on or before 1st January, 2009.
Other equally important eligibility criterions that determined whether a homeowner was eligible for home affordable refinance program or home affordable modification program was that the home in question should be one’s primary residence, the total balance owed on the home should be more than 31% of the total monthly income of the homeowner, the total balance owed on the property should not be more than $729,750. If the homeowners could meet the following parameters then they were given the opportunity to choose from both the programs under the single most effective and all encompassing federal making home affordable program. The making home affordable eligibility criterions were made flexible and it could easily beat the strict terms and conditions of the previous home affordable programs.
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