Is the Obama Refinance Package Working?
The latest press release on the Obama mortgage package has revealed the actual number of transitions under way and the actual number converted so far. This information relates to the HAMP (Home Affordable Modifications Program) and not the HARP (Home Affordable Refinance Program).
The goal for the HAMP program is to offer assistance to between 3 to 4 million homeowners who meet the eligibility requirements for the program (see link at the bottom of the page) over a 3 year period, the program ends on the 31st December 2012.
There were 728,000 loan modifications being progressed as of the end of November 2009 with 31,382 having reached the permanent stage.
That said, the expectations are that the program will meet it’s objectives over the coming years and with an average saving of $550 per month for borrowers there are real benefits to be gained. So if you are wondering how can the Obama stimulus help you, then all you need to do is consider how much the refinance incentive is helping real people. 31,382 loan modifications may not sound a lot, but for those people that have reached the conversion stage, on an individual basis, these savings often represent the difference to keeping or losing homes.
