President Barack Obama’s Loan Modification Plan is one of the most widely discussed financial measures that any government has undertaken in recent times. This is an attempt by the President and his team of financial experts to undo the mortgage investment debacle, and reduce the impending foreclosures.
Foreclosures in current scenario help neither the defaulting homeowner, nor the lender. In February 2009, this team of financial experts unveiled this scheme under which lenders were asked to come forward to resolve this impasse. Through this plan, the president is also trying to ensure that homeowners are not rendered homeless because of their inability to pay the EMIs as per schedule in the current financial scenario. If such help is not rendered, many homeowners stand to lose their homes. The entire scheme will cost the federal government about $75 billion, and will benefit almost 4 million homeowners. Some of these homeowners are already delinquent, whereas others are on the brink of defaulting. The scheme will continue till December 2012. Continue reading ‘Mortgage Tips – Loan Modification Program’ »