In March 2009, President Obama introduced his home mortgage modification and refinance plan. Homeowners who are having a hard time paying their home loan every month, or homeowners facing a foreclosure, this plan could save you hundreds every month, or more importantly, your home.

With the struggling economy and the slump in the housing market millions of Americans now find themselves in financial trouble. Luckily, the Obama loan modification program has been enacted to help you navigate through these hard times.

So what type of help will I be able to receive from this new home mortgage plan from the Government?

If you live in you home as a primary residence, and owe less than $729,500 on your mortgage your may be eligible to take advantage. The Government will help minimize your payments and ease your financial burdens for up to 5 years. This may include an increase in the length of the mortgage, reduced interest rates, or both.

Homeowners facing financial hardships such as, loss of job, loss of income, medical bills, large debts, and a whole list of others, can now modify their home loan and get a monthly mortgage payment that is 31% of their monthly income. To qualify, a homeowners must write and sign a letter of their “Financial Hardships” and agree to go to free credit counseling. Also, the home loan must have been closed and signed on before January 1st 2009.

This home mortgage modification process contains very stringent income verification, proof of ownership, and proof of expenses. Be prepared to have tax returns, debt documentation and other relevant information to make this process as easy as possible. A lot of homeowners can save a lot of money, or even their homes, through the use of the plan from President Obama. Look into it now to see how much you could be saving.

-M Petrone

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