Need Mortgage Refinance

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.

So if you need a home loan modification you may want to think about applying, as stated the program is set to run over 3 years and so far only about a 1/3 of the 3 million target have had trial period plan offers extended.

The evidence is showing that people who have converted their mortgages are meeting their payments and that top administrators in the government have recently been putting pressure on mortgage servicers to speed up the program to get more borrowers to the finish line.

The full report is available here Financial Stability and is based on figures made available through November 2009.

The 2 programs available through the Obama refinance package are the  home loan modification program and the home loan refinancing option. Click on the links to find details on the eligibility requirements for each part of the program.

The ‘loan refinancing’ program is due to end by June 2010 which is rapidly approaching, but with average monthly savings of around $150 dollars available it is at least worth checking your eligibility; you will need to move fast however as time is running out.

There is a 3rd option, the Hope for Homeowners program which is due to end on September 30th, 2011. The eligibility for this program is different to the other 2 programs and you should be aware that this program was set up initially during the Bush administration period.