The Obama Mortgage Plan 2010: A Lifesaver Or A Useless Initiative?

President Obama did not inherit anything pleasant: a country in deepening recession and a need for fast and effective decisions to make. Shortly after his inauguration an action was taken aimed to offer solutions to struggling homeowners in declining economy. It resulted into implementation of the Homeowner Affordability and Stability plan, commonly referred to as HASP, and the Loan Modification Plan.While looking great at first, bringing hope the hearts of many supporting Americans, they actually failed to serve their stated purpose as very few households and lenders actually benefited from the above plans. Several trusted agencies and research institutes have conducted a thorough research of the above and proved that the reform programs are not that great.Obama's Healthcare Plan Is Another Failure To HappenIt is clear to many now that so praised health care reform, pushed through by Democrats lately, is lacking many important aspects. It does not have effective control tools to enforce the healthcare program, does not offer healthcare cost savings, and fails to bring the benefits of making medical care affordable. With no mechanisms in place to encourage healthy competition among healthcare providers, insurance premiums are as high as they used to be, and medical bill are even less tolerable, especially for those requiring prolonged treatment and medical care. Citizens that are not able to qualify for federal and state funded medical programs still face increasing insurance premiums and medical provider bills. This initiative is starting to fail already as affordability of medical services is in serious question.Obama Aims To Help 5 Most Trouble States With New Mortgage PlanNewly adopted changes, aimed to help residents of California, Nevada, Arizona, Florida, and Michigan where foreclosure rates are the highest, are questionably a benefit to citizens. Nevada, ranking first in foreclosures for the past three years, was the first one to target with the new plan. However, the program failed to deliver mortgage payment reduction for struggling homeowners, with people finding it extremely difficult to get any help. The other four states, sharing a $1.5 billion bailout for banks and mortgage lending institutions, do not show any visible progress either. While some of this money was supposed to assist people who experienced layoffs or pay cuts, it is barely so. Overall, no effective solution was achieved regarding mortgage-related issues, adding this initiative to the list of other failures of present administration.More And More Applicants Are Rejected Under Mortgage Assistance PlanWhile mortgage lenders try to make it easy to homeowners to redeem their borrowed credit, they take recovery steps to reacquire their capital should payment defaults happen. Banks tend to initiate loss mitigation as they fear bankruptcy filings made by homeowners. An effective way to support the mitigation process and to assist in mortgage modification is to offer favorable repayment terms, offering lower interest and reduced monthly payments. HASP plan, designed by Obama administration, has been implemented for this to happen.It seems like, however, that good intentions do not go far, as too many people are being rejected assistance under HASP. Eligibility criteria seem to be way unreachable to borrowers. At the same time, private lending institutions do not see any added benefits either to endorse the program. Government was expected to ease the qualifying criteria for homeowners, and, as a result, Obama mortgage plan 2010 was developed. It is mainly aimed to increase the effectiveness of HASP by eliminating abovementioned drawbacks.