Foreclosure Ban…Review for Obama’s Modify Mortgage First

The Federal Housing Finance Agency (FHFA) is authorizing the extension of Home Affordable Refinance Program (HARP) until June 30, 2011. Also included in the HARP is the modification program. This is good news for those who need to refinance their homes but still have little equity in their home. TheTruthAboutMortgage.com reports that 24% of mortgages in America are “underwater”. Meaning, there is a need for modification or refinance to lower payments and get payments to a managable amount.
The Obama Administration announced the foreclosure ban. Possible foreclosures under this plan would have to be reviewed for to see if they would qualify for the Home Affordable Modification Program first. TheTruthAboutMortgage said, “A document detailing the proposal obtained by Bloomberg said it ‘prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed.’”
This plan is not approved, but many think it will not be shot down.