Homeowners facing financial hardships and would like to get a fixed rate 2% home mortgage refinancing or modification should take advantage of President Obamas “Making Home Affordable Plan”. This housing bailout is a $75 billion plan to help homeowners save their homes, and hundreds of dollars per month. Here is how to use it to your advantage:

-Homeowners facing a “Financial Hardship” which can include bad mortgages, loss of job, loss of income, hospital bills, or a whole list of other things, can use this plan from Obama to refinance their home loan into a Government backed fixed rate 2% mortgage. If you are going to apply for this modification or refinancing program from Obama, make sure to include a handwritten and signed letter stating all of your “Financial Hardships”. Include all related bills, bank statements, pay stubs, tax returns, and any other related documents. This will help ensure your approval for a great low interest home loan.

-A wide variety of new home loan and low interest grants are available from the Government to help ease homeowners immediate financial hardships, and increase the chance they will not lose their home to foreclosure. These grants and loans can be used to pay off other higher interest debts, and save the homeowner hundreds in interest payments per month.

-Homeowners who currently pay more than 31% of their monthly gross income towards their monthly mortgage payment are now eligible to use the “Making Home Affordable Plan” to modify their home loan into a payment which would equal 31% or less of the homeowners monthly income.

-If a homeowners debts, including the monthly home loan, are more than 51% of a homeowners monthly income, they will need to agree to go to free government provided Credit counseling. You can find out more about these free credit counseling sessions by visiting your local HUD office.

-Homes which have declined in value more than 15% will be eligible to use the benefits from the Obama plan, including 2% refinancing or mortgage modification. A lot of homes have dropped in value as a result of the bad economy, and the housing market, which is even worse.

Mortgage modification or refinancing
are great options, especially using the Obama plan, for a homeowner to save money every month, or even their home. You should take advantage now, or at least look into the potential savings which you can get through this “Making Home Affordable Plan” and see if it is worth it for you. If you are financially struggling and a homeowner, odds are you can save hundreds a month with this plan.

-M Petrone

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