Obama’s Making Home Affordable Plan Update


Secretary of Housing and Urban Development Sean Donovan was on Bloomberg this morning discussing the state of housing and the Obama Making Home Affordable Plan. There are some signs that the program is starting to work.”I think we have a good balance of carrots and sticks” said Donovan when asked about banks and servicers working together to modify mortgages for homeowners unable to make mortgage payments. Time will tell if indeed the plan is working. I can tell you that here in Arizona, one of the hardest hit areas, the numbers are starting to be not as dismal. Mark Tait, a principal in NXT Generation Real Estate shared some interesting numbers with me last week:

In the greater Phoenix Metro area:

  • Year over year closing are up almost 4000 units.
  • Inventory has dropped almost 9000 units since December, 2008.

“As a man on the street, I can tell you multiple offers are back and most REO properties.” said Tait, “$200k and below are going out at FULL PRICE.” Now does this mean that we have a bottom in housing? No, I don’t think we have hit bottom in terms of values yet, what I can say though is that activity is returning to the market–and that is the first step on a long road to stability.

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  1. Be wary of a fales bottom in this market. We’re seeing the inventory of distressed homes (foreclosures & short salss) declining, but not “retail” properties.

    Also, the FNMA/FHLMC foreclosure moratoriums have been lifted and will lead to increased inventory soon.

  2. Can anyone give me a website address that has the real answers to President
    Obamas “Home Affordable Plan” to avoid foreclosures and receive a Modification.

    Thank you for your assistance.


  3. 17 June 2009


    Is there any help, advice, solution, out there in cyberworld for me?

    Folks, in accordance with the directions for the public to follow as outlined by federal laws brought forth by President Obama designed to protect citizens from home foreclosure, I have done the A to Z steps and still find myself in limbo.

    As directed to do by HUD and makinghomeaffordable.gov, I submitted an application to ACORN Housing, one of the agencies approved by HUD and which is listed on the HUD website. After waiting 2 months without hearing from my Acorn Counselor or the lender for my mortgage, Wells Fargo, I turned to the offices of elected officials, namely, the California State Assembly and the office of the Congressmember representing the district in which my home is located.

    I initiated contacting Wells Fargo as far back as June of last year. I engaged in a most frustrating and time consuming ring around the roses phone calling game from Feb to March of this year, going absolutely nowhere.

    At this point what can I do to FINALLY MAKE PROGRESS?

    I am in a very precarious financial state. Since May -08 my work hours have been reduced to 50% and my monthly mortgage absorbs nearly my total net income.

    I seek relief in the form of a modification put in place for me that is 31% of my income, sharply cuts the principal amount, replaces the adjustable rate with zero payment toward principal balance with a low fixed rate.

    This is in accordance with President Obama’s prescription for home ownership protection.

    Please, anyone, everybody who knows, kindly reply.

    At this point I am seriously considering sending a letter directly to Sec Shaun L.S. Donovan. Would that do any good?

    Again and AGAIN, PLEASE HELP!


  4. Being in the industry as a Loan Officer, I have viewed a lot of confusion as it relates to home owners getting the help they need. We can start with has anyone been help? yes. Do most people know about Obama’s plan in detail and how it applies to them? No. A lot of people are confused and don’t know about the finer details like qualifying, where to get the information they need, who to trust! I will go on to say that the government needs to put more emphasis on educating the public on what is available and how people can tap into it. Assistance is available and their are good programs to help people, but we must do a better job of getting this information out!
    .-= Chuck McCall´s last blog ..6 – Tips for Negotiating a Loan Modification Successfully =-.

  5. I am working with Bank Of america on a loan mod with the making home affordable program. They have approved me so far BUT they want me to send in a 3 month trial payment of $1370.51 and I must also continue to make my home owners assosiation fees ( insurance and maintenance condo fees) of $600 per month on my own. They said that they do not have to pay my assosiation fees from the monthly trial payments. They said I would be responsible for that on my own even though my gross salry is $5200 per month. The funny thing is my take home is $4000 per month so that will be 50% of my take home for my home. They think that they are helping me and that I should just go for it. I told them if they make my condo or hoa fees from that payment I will make to them at Bank Of America that it is fine, but it isnt that way. I think they are testing me to see if I can deal with a $200 month payment.What do you think about this situation? Is it fair under Obama’s plan?

  6. I too am working with Bank of America on the MHAP…. So far I am on my FIFTH month of trial payments which are well ABOVE my 31% GMI. The fact that I have missed payments due to my layoff a year ago this month I try not to complain too much… But, if the president is going to implement a plan to “help” then I expect that BofA should follow the guidelines as they are written out… yes I have read them, like 10 times. I am also unsure of what will happen in 5 years when everyones mortgage goes up a percent after we are all adjusted to our life styles and the house payment at whatever it gets modified to I really don’t want to go through this again in 5 years! I am also unsure of the main concern of mine which is not knowing if I will ever at least even break even and get out from under since my house is at about 123% LTV! As far as the trial payments, I fought with B of A before I even signed to pay the MHAP trial payment (since it was not even close to my 31% gross income) to bring the payment down and that was an endless battle that was going no where fast! The house is only in my name and they are adding my husbands income, when the MHAP clearly states “borrower” B of A says ALL “household” income.
    I want to know if anyone has ACTUALLY rec’d a loan modification under the MHAP????? NOT THE TRIAL part, but actually has new loan doc’s stating everything in writing…
    B of A said that the trial payment “should” closely reflect what your new modified payment will be and if thats the case, I am outta there it is only a $200.00 difference and that is not enough in this day in age seeing how the cost of everything is up and salries are not!

  7. I work for the Home owners hope hotline. “888-995-hope” , I feel bad for half the people that call in (the responsiable half). In this economy its the only job I could find, And its horriable knowing this program has so many faults and that The workers at the hotline know more about the program then the banks do. Or that the workers can tell the goverment exactly whats wrong with the program But we have no pull ( I wouldnt think we would have any anyways .
    I just read out of some thin like 1.75million people. 340,000 have been helped. They cn be denied for NPV. Because its cheaper to foreclose then to help. Thats not helping home owners once again its helping banks, You can be denied for missing a trial payment that goes over 3 months time,with out ever recieving notification from the bank that you should make a couple extra payments til things are Finished. Ive seen someone denied by BOA because of there grocery bill, Because there eating to many FRESH Fruits and vegetables, Said so rite on there rejection letter. Thats a wrongful denial and they were sent to escalations.
    Everyone who works at the hotlines loves the people we work with, Hates the program we work for. And think this program is a waste of taxpayers money. And it is…. The banks get tax payer incentives for every loan they modify. And at 340,000 loans modd’ed compared to 1.75 million rejected. Thats not much. BOA- Wells fargo- CITI mortg- Chase all the big player are also the worst for this program….

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