Did the Payment Due Date for Mortgages Change in Obama's Mortgage Laws?

Your mortgage is a financial instrument executed by a borrower and the lender holding their property loan. With the advent of the Making Home Affordable Plan launched by the Obama administration in 2009, by 2010 some lenders might accept changes in the terms of mortgages they've issued.

History

In 2008, the U.S. economy took a distinctive downturn with a wave of foreclosures hitting the market due to struggling borrowers unable to maintain their payments. As the government reviewed the amount of mortgages in default and headed to foreclosure, there was an outcry by the public for assistance. The Making Home Affordable Plan was the result, hoping to make mortgages more affordable and keep families in their homes.

Options

The new plan in place encouraged lenders to offer borrowers options to help keep homes from foreclosure. With these options, some allowed for changing the structure of payments with a loan forbearance or modification, allowing due dates to become eligible for change and extension.

Considerations

Homeowners struggling to make payments have always had the option to contact their loan servicer and change a payment due date, providing they have a good payment history. It is important to note, however, that changes in terms or due dates ultimately remains in the hands of the borrower and the lender. The government holds no jurisdiction in these matters.

References

• Government Mortage Help: Government Mortgage Assistance 2010
• CNN Money: Mortgage Help: Do You Qualify?
• Making Home Affordable: FAQ's