How to Inquire About Your Eligibility in the Obama Refinance Plan

April 25, 2012 by  Filed under: Loans 

The Obama refinance plan was introduced as the government’s response to the increasing numbers who were severely affected by the economic downturn. One of the more famous documents Home Affordable Refinance Program (HARP) was specifically targeted at home owners who owed more on their mortgage than the amount that their home was worth.

These people would typically not get refinancing from the banking sector and they therefore faced foreclosure and ultimate loss of their homes. These people were those who had no other equity options and were probably the very population that needed the one home that they lived in.

What the HARP program as part of the Obama refinance plan intended to achieve was to give the mortgage owner a completely new mortgage agreement entered into with new repayment terms. It was expected to help the mortgage owner the opportunity to either make lower monthly payments or move into a more stable mortgage plan.

The three most significant qualifiers for anyone applying for a HARP loan is that first they should up to date on their repayments which is clearly detailed. The mortgage owner should not have a late payment in the six months preceding their application and should only have one late payment in the 12 months preceding their application.

Second, they should also only apply for the Obama refinance plan if they owe more on their mortgage than the value of their homes. The third is that their mortgage had been sold to either one of the housing giants, namely, Fannie Mae and Freddie Mac by the 31 June, 2009.

In order for a lender to qualify you for a HARP loan, you would need to go through a basic loan approval process which would be very similar to the one you went through to get the initial mortgage. This article gives some of the inquiries you will need to make and the kind of documents you will need close at hand as you speak to various offices.

One of the first inquiries you will need to make under the Obama refinance plan is to establish if your mortgage is owned by either Freddie Mac or Fannie Mae. Another way to quickly get this information is form the websites of either one of the two companies. Having confirmed that detail go on to put your financial details in an orderly manner as they are the most important facts that any lender will be looking out for. Therefore, you should have at hand information about your current earnings.

If you have any other payments that you are making such as child support or college fees, then you should tabulate all the additional payments you make per month. Finally have at hand the assets you may have such as other houses, cars, boats, and additional equity as well as other sources of income that would help support your eligibility to the Obama refinance plan. To make your inquiry faster, have the documented evidence of all your financial matters.

I’m a loan advisor specializing in Obama refinance plan.

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