Homeowners

The Homeowner Affordability and Stability Plan

In the past few months, we have definitely seen the economy go down hill. The housing market has almost crashed and many people are looking for relief. With so many people having difficulty making home payments, the list of foreclosures is large and going up by the thousands every single day. Well, in order to try to help people dealing with this problem the Homeowner Affordability and Stability Plan has been created and will soon be started up. Of course many people are not even aware of all that this plan has to offer. So, here is a closer look at the plan, why it has been created, the components of the plan, how to know if you are eligible, and when it all is going to get started.

Why This Plan Has Been Created

So, you may be wondering why the Homeowner Affordability and Stability Plan has been created by the Obama Administration. Well, the plan has been developed to help the millions of families that will probably be facing foreclosure in the near future as well as people who are working hard to keep current on their mortgage. We are dealing with a real estate crisis as well as an economic crisis. In order to keep problems from going even lower as the foreclosures mount up, the administration hopes that this plan will help to stabilize the market and eventually start things back on an upward trend. The plan is supposed to help millions of people keep current on mortgage payments and to help prevent foreclosures from happening as well. It will work to help the housing market recover while helping workers pay on their mortgages to prevent a further crisis.

This plan comes with several different components. Here is a look at the three main components that make up this plan, how they work, and the goals of each component as well.

Component #1 – Offering Refinancing for Homeowners that are Responsible

The first component of the Homeowner Affordability and Stability Plan is to offer refinancing to homeowners that have proven to be responsible. This way they don’t continue to suffer because of falling home prices. Some people are having great difficulties dealing with their mortgage payments, since now their homes are worth far less than what they owe on their mortgage. This component of this plan will work to help those people refinance for lower rates and payments so they can continue to afford paying on their home without having to face foreclosure in the future.

Component #2 – Homeowner Stability Initiative ($75 Billion)

The second component of the Homeowner Affordability and Stability Plan is a homeowner stability initiative to the tune of $75 billion dollars. This will include a loan modification plan that will reach out to lenders to help them reduce payments and will also provide incentives to borrowers as well. This is expected to be helpful to 3-4 million people who own homes. Clear guidelines are laid out within the plan for the loan modifications that will take place as well. During bankruptcy people may be able to modify their home mortgages as well. It should also help out FHA loan programs and should provide more hope to those that own their own homes today.

Component #3 – Strengthening Freddie Mac and Fannie Mae

The third component of this plan is going to help strengthen the confidence in Freddie Mac and Fannie Mae, which should help to keep mortgage rates low. This component has several different steps to it. It will provide for responsible homeowners low cost refinancing if they are dealing with problems due to home prices that are falling. This will help them to reduce the payments that they are paying each month so they are more affordable. There is also money to help prevent foreclosures as well.

Who This Program Will Reach Out To

There are many people that this plan is attempting to reach out to. It is focusing on those who own homes and who are at risk of ending up in foreclosure. It provides loan modification to these people. It also reaches out to those who have not been missing their payments. For families that have a lot of debt, there are special provisions in this plan for them as long as they going into debt counseling that is HUD certified. It should provide protection to tax payers, will provide counseling as well as outreach, and will limit foreclosures in the future as well.

How to Know if You are Eligible

So, now that you know a bit more about the Homeowner Affordability and Stability plan, you may be wondering how you can know whether or not you are eligible for this plan. Usually you’ll need to have enough income to make a new payment and you’ll need to have a fairly good payment history as well. Of course not all of the eligibility details are out yet, and they will be announced when the program gets started.

When the Program Starts (March 4th)

Wondering when this program will get started so you can start benefiting? Well, you’ll find that the program is going to get started on March 4th, when you’ll be able to find out a whole lot more about it.

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