What is an Obama Loan and How Do I Qualify?

You may have caught a little snippet of the most recent news to hit the financial world- the loan referred to as the Obama loan. If you have questions about what this loan is and if it is right for you, then you are reading the right blog. We have the answers for you! 

The Obama loan is a refinance program under the Home Affordability Refinance Act. This allows people who are financially struggling to refinance their home under the following conditions:

• They have good credit
• They have made their payments on time
• They are upside down on their mortgage or in an adjustable
   interest rate or their interest rates are too high

The point of the program is not to rely on government assistance, yet instead to benefit from having a home with a lower interest rate. Lower interest rates mean lower payments, and it can be just the thing for many individuals to get back on their feet again.

However, the most common misconception about the Obama loan, also known as HARP 2.0, is that individuals can qualify for this loan, when they are behind on payments. Unfortunately that is not the case. Good credit and a good standing with the mortgage company is required. So what is an individual to do when they are behind on their mortgage and don’t have the best credit?

This is where Ascent Network comes in. We are here for those who have fallen behind financially but still have a fighting spirit in them. We utilize another government program called HAMP, known as the Home Affordability Modification Program. This program has been in place since 2009 and was started under the Obama administration.
 
Ascent Network is a non-profit organization that can help individuals utilize HAMP to turn their lives around for the better. Visit our Web-SIte http://www.theascentnetwork.org or give us a call (949) 491-0777

Three Easy Ways Anyone Can Fix Their Credit Score

Three Easy Ways Anyone Can Fix Their Credit Score

There are so many people with bad credit scores in this economy downturn. Many times, it is not the individual’s fault. So many have gone from excellent credit ratings to poor ratings due to a job loss or the inability to pay their mortgage payments. When your credit score suffers, it is very hard to live your life free of financial burden.

This is why our company is so passionate about credit restoration. When you turn your credit score around, you turn your life around. With a better credit rating, you can expect lower loan payments with lower interest fees, better chances at renting a home or apartment, and even the possibility of a better job.

So how do you fix your credit score? We have three simple ways for you to do so.

It is crucial to find a trustworthy company that focuses on credit restoration. The right company will go after the credit bureaus aggressively and amend any errors in your credit report.  This will raise your credit score drastically. There are also things that any individual can do to improve their score.

First, after you straighten out your accounts and loans, don’t close them. Many people think that if they close a credit card account with a $0 balance, then they will avoid the temptation of going into debt. Keeping your credit card account open means that you have available credit. Credit bureaus look at these accounts to determine your score.

Secondly, remember this saying of “bad credit is better than no credit”. You need to have a credit history. You can easily go to your local credit union and put $500 on a secured Visa or Mastercard. This will help you establish credit without the possibility of going into debt.

Finally, continue to monitor your credit. Look out for any errors that will negatively impact your credit score. A good credit score rating is worth a lot in this current economy. Don’t think it is too late for you just because you have a bad score.

More information credit repair information go to our site. Ascent Network Credit Repair

image from Flickr users 401(K) 2012

312K Americans Default on Their Home Loans – Is HAMP in Trouble?

The HAMP, also known as the Home Affordable Modification
Program, was designed to help homeowners continue paying their
payments on their home. Instead the opposite is happening and
many homeowners are suffering. According to the special inspector
general for the Troubled Asset Relief Program, 312,000 homeowners
have been defaulting their mortgage payments. The report predicts it
is just going to get worse from here.

The HAMP program was developed under the Obama administration
and lent $75 billion to help lenders reduce the mortgage payment
of homeowners. With this money, lenders would be able to reduce
mortgage payments to 31% of the homeowner’s budget.

The idea behind the program was to help individuals avoid
foreclosure. It is a noble idea, but unfortunately it is not working. What
is happening is that homeowners are defaulting on their reduced
payments. When that happens, the homeowner is then faced with
large mortgage payments, and failure to pay means foreclosure.

The administration had said that HAMP would help more than 4
million people avoid foreclosure. Even when there are so many
defaults, the administration still speaks positively of their program.
The findings of this report, however, find out that the program hasn’t
even helped 1 million Americans.

The suggestion for avoiding more defaults? They suggest setting
up a warning system to help homeowners who are on the verge of
default.

So who is to blame here? On one hand, homeowners should not
have defaulted on their modified loans, especially since they were
given a second chance. On the other hand, there are many problems
with the program, such as delays and “lack of transparency in the
denial process”, according to the article.

Story Credit: http://goo.gl/RGTaj
Image Credit By Images_of_Money
http://www.flickr.com/photos/59937401@N07/5474464467/