The rate of foreclosures across the nation overshadows the amount of homes that have been saved by the Obama Administrations' Making Home Affordable program. In an effort to continue to help those that are facing foreclosure the Obama Administration has expanded its $50 billion program yesterday. The additions to the program are geared towards aiding home owners that don't qualify for any other form of assistance.
For mortgage holders that are unemployed or that are underwater on their mortgage, the options of a short sale or a deed in lieu of foreclosure are the two options that are generally available. A short sale provides an opportunity for the home owner to sell their property for less than the value of the loan, while a deed in lieu of foreclosure requires the borrower to sign the title over to the lender. Both of these options will put a black mark on the home owner’s credit, but neither will be as detrimental as a foreclosure.
The Making Home Affordable program has not taking off as quickly as most had planned; however, it appears to be working. Since the start of the program in March of 2009, fourteen different companies have signed up for the program and will receive a check for each loan that they modify. These 14 companies make up for nearly 3/4 of the mortgage market and can account for 55,000 offers to modify loans.
