President Obama knows the tough financial environment of the US right now. With that in mind, he has enacted the $75 billion “Making Home Affordable” plan which will allow mortgage refinancing or modification into fixed rate 4% home loans. Over 9 million homeowners can take advantage of this plan and save hundreds every month in interest payments.

With home prices dropping, new home sales almost frozen, and foreclosures on the rise, this plan could not have come at a better time. Foreclosures hurt all property values in their surrounding neighborhood, as well as the finances of the homeowner and lender. With this plan, the amount of foreclosures would drop, housing values would start to rise again, and consumer confidence that the housing market will return. This plan comes at a crucial time for many homeowners who are about to be forced out of their home, have lost their jobs, lost their income, have high debts, or are in a bad mortgage which is still worth more than the home they live in.

This plan was just enacted in late May and millions of homeowners can take advantage. Some things which were once required for a typical home mortgage modification or refinance, like 20% equity in your home, may no longer be needed. Now, for instance, a homeowner can still refinance using this Government backed plan even if they owe up to 5% more on their home loan than the home is actually worth. Other things will still be needed to refinance or modify a home mortgage loan. Things like income verification, tax returns, pay stubs, bills, and other things will still be needed to properly refinance your home.

This plan will use the $75 billion dollars funded for it to give cash incentives to mortgage lenders or banks to approve homeowners who are facing foreclosure or other financial problems. The money will be given directly to mortgage lenders and banks who extend home refinancing and modification options to struggling homeowners. So now the typical homeowner has a great chance at getting approved for a home loan refinance or modification. Even if you have been denied before, now there is a much greater chance of getting those loan papers approved, and saving your home or hundreds of dollars every month. Lenders and banks would rather deal with you and assist you in obtaining affordable monthly payments than go through the foreclosure process.

Look into taking advantage of this plan and see the potential savings every month. There really has never been a better time to refinance your home loan. This plan will save millions of homeowners from losing their home or falling deeper into debt. Look into refinancing or modifying your home mortgage today and see the potential savings.

-M Petrone

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