Itâ€™s been a few months since President Obama announced his Making Home Affordable housing plan. Unfortunately, in many parts of the country, including right here in Benicia, Vallejo and much of the rest of the Golden State, the plan likely wonâ€™t have much of an impact.
And, judging by what many of my colleagues in other parts of the state or country are saying, the program may be one of those that sounds good but has little impact in some of those areas as well.
In case you missed it, the Making Home Affordable Plan is supposed to help up to 9 million U.S. homeowners refinance or modify their loans in an effort to prevent responsible owner-occupants from instead becoming foreclosure casualties.
The program targets two different types of borrowers:Â
1. Those who have been unable to refinance and take advantage of todayâ€™s low interest rates due to their homeâ€™s drop in value; and,
2. Those who are either behind on their payments or struggling to stay current.
Part I â€” Refinance Assistance
The first program allows those who owe up to 105% more than their homeâ€™s current market value the opportunity to refinance into a lower-cost loan. Unfortunately, here in Solano and Contra Costa Counties as well as pretty much the rest of the Bay Area, most of theÂ homes that are under-water have lost so much equity that theyâ€™re worth far less the 105% maximum that the Making Home Affordable plan allows.
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