President Barack Obama aimed his 2012 mortgage relief programs at members of the military as well as civilian homeowners, with government-insured loans to address the overall housing crisis.
Before they were famous, many truly influential men and women started by serving their country in the US military or grew up in military families.

President Obama's Mortgage Relief Helps Military Homeowners

Posted:

President Barack Obama aimed his 2012 mortgage relief programs at members of the military as well as civilian homeowners, with government-insured loans to address the overall housing crisis.

President Obama allowed borrowers with mortgages insured by the Federal Housing Administration to refinance at lower rates, saving the average homeowner more than $1,000 a year.

And specifically for military service members, President Obama made an agreement with major lenders to compensate service members and veterans who were wrongfully foreclosed upon or denied lower interest rates, thereby violating their Service members Civil Relief Act rights.

OBAMA'S RELIEF FOR CIVILIAN HOMEOWNERS

Under Obama's housing plan, FHA-insured borrowers would be able to refinance their loans at half the fee FHA currently charges. FHA borrowers who want to refinance now must pay a fee of 1.15 percent of their balance every year. Officials say those fees make refinancing unappealing to many borrowers. The Obama housing plan will reduce that charge to 0.55 percent.

In 2012, with mortgage rates at about 4 percent, the administration estimated that a typical FHA borrower with $175,000 still owed on a home could reduce monthly payments to $915 a month and save $100 a month more than the borrower would have under current FHA fees.

RELIEF FOR FORECLOSED MILITARY HOMEOWNERS

By 2012, more than 20,000 service members had lost their homes to foreclosure. Many of them were foreclosed in direct violation of the Service members Civil Relief Act which protects active duty service members against foreclosure.

For service members and veterans, Obama announced that major lenders will continue to review foreclosures, to determine whether these foreclosures were indeed done improperly and illegally.

For example, you may have been told that you don't qualify for a loan modification or even a short sale unless you're delinquent on your mortgage payments.

But you are also told to do all you can to remain current on your mortgage. And even if you are delinquent, there's no guarantee that the bank will modify your mortgage rather than foreclose.
And, under the rules of the SCRA, no service member on active duty can be foreclosed upon without proper notice, which often happens while being unavailable on active duty.

If wrongly foreclosed upon, President Obama proposed that service members and veterans be paid any lost equity and also be entitled to an additional $116,785 in compensation. That was a figure reached through an agreement with major lenders by the federal government and 49 state attorneys general.

Under the agreement, the lenders also would compensate service members who lost value in their homes when they were forced to sell due to a military reassignment.



RELATED ARTICLES:


Sponsor:

VA Loans for Veterans
Complimentary VA loan pre-approvals will give you the comfort you need to shop for your home with confidence. VA refinance loans available.


VA Home Loans

Military Hub is not a government website and is not affilitated with any branch of the U.S. Military.


Support Our Troops:

Semper Fi Fund
The Semper Fi Fund provides financial assistance and support to service members and their families.
IAVA - Iraq and Afghanistan Veterans of America
IAVA is the nation's largest nonprofit, nonpartisan organization representing veterans and their families.
Team Rubicon
Team Rubicon unites the skills and experiences of military veterans with first responders.
Pat Tillman Foundation
The Pat Tillman Foundation invests in military veterans and their spouses through educational scholarships.

About Military Hub
Privacy Policy
Contact / Advertise

Copyright © 2008 - 2017
Advertise Military, LLC
All Rights Reserved

Disclaimer: MilitaryHub.com and MilitaryRates.com are private websites that are not affiliated with the U.S. Department of Veteran Affairs, any U.S. government agencies, or any U.S. military branches. Our sites contain basic information about veteran benefits, pay tables, current events, and news for active duty military personnel, military veterans, and their families. You can find additional information on these topics at the official website for U.S. Department of Veteran Affairs.