The economy is tough, and the housing market is even worse. Many homeowners are struggling to make their monthly mortgage payments, and lots are facing foreclosure or defaulting on their home loan. There is some good news though, and it comes from President Obamas “Making Home Affordable Plan” which is a $75 billion plan to help homeowners refinance or modify their home loan into a fixed rate 2% home mortgage. The amount of money the average homeowners will save is in the hundreds per month, and qualifying is easy. Here is how to use this plan to your advantage and save a lot of money, or your home from being foreclosed on:

The first thing you should know, is that this plan is offering cash incentives to mortgage lenders and banks who offer assistance to homeowners facing “Financial Hardships” or otherwise are considered “High Risk”. These cash incentives enable lenders and banks to loosen up the requirements needed to refinance or modify a home loan. Ultimately that means that more applications will be approved, and even if you have been denied a home loan modification or refinancing in the past, or your credit is bad, or the value of your home has dropped, odds are you will still be approved for the home loan refinancing or modification.

Here are some of the eligibility and qualifications needed to use this “Making Home Affordable Plan” to your advantage:

-The home to be refinanced using Obamas plan needs to be lived in as a primary residence of the actual homeowner. This plan will not assist people looking for help with a second home, investment property, or vacation home.

-This plan will only to qualify for home loans which have a current balance remaining on them of $729,500 or less.

-Millions of homes have seen their value drop as a result of the bad economy, and worse housing market. As a result, homeowners are increasingly being stuck with mortgages that are worth more than the homes market value. Even after years of payments. This plan will allow homeowners who have seen their home values drop by 15% or more a chance to get a proper 2% fixed rate home loan modification or refinancing.

Homeowners all over the country should do themselves a favor and at least call a mortgage lender or bank. The savings being reported from homeowners who have taken advantage of this plan and gotten a fixed rate 2% home loan refinancing or modification are reported to be in the hundreds of dollars per month. This easily equals thousands of dollars in savings over the course of the home loan. You can easily save a lot of money, or maybe most importantly your home from foreclosure, by taking a few easy steps and doing something about your problem.

-M Petrone

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