Obama’s mortgage refinancing program called ‘Making Home Affordable‘ program is supposed to expire this June 2010. It was announced in April 2009 and was meant to help 5 million troubled homeowners.
Unfortunately many of these homeowners experienced different problems. Some homeowners could not qualify for the program because they were too deep in debt. The program is also limited to mortgage loans backed by Fannie Mae or Freddie Mac. Many homeowners have second mortgages or private mortgage insurance, which got in the way of refinancing a primary loan. There are reasons for not refinancing because many were not able to afford the closing fees involved in it. Additionally, in many cases it is the lenders’ delay in processing complex refinancing packages for homeowners with secondary mortgages or their struggle to update their computer systems to accommodate the program. As a result only about 190,000 homeowners were able to refinance their mortgage.
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