President Obama and his team have enacted a home mortgage refinancing or modification stimulus package backed by $75 billion in Government money to help homeowners obtain a more affordable monthly home loan payment. Over 9 million homeowners are able to use this plan to their advantage and save hundreds every month. Here is how it works:

Since foreclosures are at all time highs all across the country, and home prices and consumer confidence in the housing market are plummeting. As a response to these very obvious problems millions are facing, Obamas “Making Home Affordable” plan will allow homeowners, even those facing or in foreclosure, the chance to get a fixed rate 2% home mortgage refinance or modification. This would save homeowners hundreds of dollars every month which would lower the foreclosure rate, and drive up consumer confidence as well as home prices. This would help everyone, homeowners, banks, mortgage lenders, and the economy overall. However, there are some eligibility requirements that a homeowner must meet in order to be able to obtain the fixed rate 2% home loan through refinancing or loan modification using Obamas “Making Home Affordable” plan.

Here, I have listed the major requirements for eligibility in Obamas housing stimulus plan:

-The home loan must have a balance of less than or equal to $729,500. Even if at one time it was more than that, the only thing that matters is the remaining balance owed.

-This “Making Home Affordable” plan is only for homeowners first mortgage, or primary home loan. Second mortgages, and similar things will not be eligible to take advantage of Government backed 2% fixed interest rates.

-Mortgages that are backed, financed, or insured by Freddie Mac or Fannie Mae are automatically eligible for modification into a fixed rate 2% loan by using the housing bailout stimulus plan. These are two of the largest lenders in the country, and millions of homeowners have home loans through them.

-Homeowners must be facing some type of financial hardship. Some of which include, job loss, loss of income, medical bills, tuition, plummeting home values, and a whole list of other things. Be sure to include a handwritten and signed letter stating your “Financial Hardships” and include it with your refinancing or home loan modification application.

-Homes which have lost 15% or more of their value can now have their loans refinanced into a lower rate. This helps a lot of people who bought a home, especially just a few years ago, and have since seen the value of said home drop dramatically as a result of the tough economy, and worse housing market.

You owe it to yourself to look into refinancing or mortgage modification and see just how much you could be saving every month. It is easy to find out, easy to qualify for, and the savings are huge. Do yourself a favor and take advantage now.

-M Petrone

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