Home Affordable Plan Gets Good Report Card

President Obama's Home Affordable Plan has been in operation since February 2009. It was hoped that it would help stabilize the housing market and help homeowners stay in their homes. At the time, foreclosure rates were astronomical. Housing sales were almost at a standstill, and real estate values were dropping rapidly. The program had several parts to it to address the different problems. Recently the administration took a look at the first year's results.

The big picture is that the real estate market is showing growth signs, and the economy as a whole is looking some better. Economic indicators have shown a small progression forward, which is much better than a downward spiral! The administration gives their home stimulus bill credit for having something to do with the progress.

Refinance packages were done for 4 million homeowners and a total of $7 billion was saved. Loan Modifications were approved for one million homeowners, and an average of around $500.00 per month was saved on house payments.

Interest rates are down, and home sales have increased somewhat. Home equity has increased by an average of $12,000 in the last three quarters of 2009.

While Obama's Home Affordable Plan was given the stamp or approval by the administration, there were some issues mentioned as things to be improved in the first year. The program was off to a slow start, and it was difficult to get through to obtain help. The program also needed some assistance for those who could not do a loan modification, even though meeting the basic eligibility requirements. That is why they added HAFA to the program in April 2010. It helps arrange short sales and deed-in-lieu of foreclosure for those who cannot stay in their homes for whatever reason. It also helps homeowners find adequate housing with a financial assistance for moving expenses.

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