The core of the President's foreclosure prevention program is to get $75 billion from the funds that have been approved by Congress for the bailout of the financial services industry and apply it for the program to designed fight against the trend of increasing number of foreclosures.  The Barack Obama foreclosure prevention initiative has three primary components and these are refinancing, loan modification, and the stimulation of more home loans.

The President wants to help borrowers who are underwater in the mortgage loans to obtain refinancing from the banks and in the process make their monthly payments more affordable.  To be accepted under this initiative of the Barack Obama foreclosure avoidance program, the loan balance of the homeowner should not be more than 105 percent of the property's present value.  The program's next component has the purpose of encouraging the banks to accept applications for home loan modifications from homeowners to bring down their monthly payments to at most 31 percent of the salary that they receive every month.  Finally, the Barack Obama foreclosure prevention program has allocated $200 billion for Fannie Mae and Freddie Mac to allow them to offer more home loans.

So far, the Making Home Affordable Program, which is the official title for the Barack Obama foreclosure prevention efforts, has had mixed results in its goal of helping homeowners avoid foreclosure and get back on track despite increasing unemployment and plunging home values.  As of the last week of September 2009, it is believed that the President's program has finally achieved some results.  It is believed that the Barack Obama foreclosure prevention initiative has caused home values to stop dropping and the slow down in foreclosure rates in a number of states.  Nevertheless, many people still point out that only a slight percentage of those who should have qualified for home loan modifications have gotten the approval of banks.

Some have criticized the Barack Obama foreclosure prevention initiative for it naivety and not being founded on sound economic principles.  Nevertheless, the Obama Administration continues to have faith in the program and has been issuing reports on its progress.  The government has proudly reported during the first week of October 2009 that the plan has accomplished a milestone that has been originally projected for the first week of November 2009.  Apparently, the plan's goal of having more than half a million trial loan modifications approved has become a reality almost one month ahead of projections.  It is therefore too early to disregard the Barack Obama foreclosure prevention program and call it a failure. To learn more about the foreclosure process stop by http://rismedia.com

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