President Obama has announced his “Making Home Affordable Plan” which is a housing bailout plan for 2009 that lets homeowners get themselves into a fixed rate 2% home loan through refinancing or mortgage modification. Millions of homeowners can easily save hundreds every month by using this plan to their advantage. Here is how is all works:

Basic Eligibility Requirements which must be met by Homeowners:

-Homeowners who have been unfortunate enough to see the value of their home decrease by 15% or more can now refinance or get loan modification through this plan from Obama. This is very helpful to a lot of homeowners, especially those who have purchased their home within the past few years, who have seen their property values drop as a result of the bad economy and the worse housing market.

-With such a bad economy, and market, a homeowner is now allowed to get a loan refinance or modification even if they owe up to 5% more on the mortgage than their homes market value. This helps homeowners who have seen their home values go down, even though they have been making payments on time, and sometimes for years.

-Homeowners who are in a “Financial Hardship” and have the documents to prove that fact, including layoff notices, bills, bank statements, bad mortgages, or a whole list of other circumstances, will qualify for a Government backed 2% fixed rate home loan through Obamas “Making Home Affordable” plan. If this is the route you are expecting to take, be sure to include a handwritten letter stating these facts and hand sign it. This should help increase your odds of being refinanced as the lender sees you truly have no options. To prevent you from losing your home to foreclosure.

-Homeowners who have a home loan which is backed by either of the two financial giants, Fannie Mae or Freddie Mac, can not get a home loan modification or refinance into a 2% fixed rate mortgage, through use of President Obamas housing bailout program.

This $75+ billion plan from Obama will help an estimated 9 million homeowners save money every month or, much more importantly, save their home from foreclosure. This means that homeowners have never had a better chance to save a lot of money through reduced interest rates, as those in the guidelines of Obamas “Making Home Affordable Plan”. The savings have been reported to be hundreds per month for the average homeowner who has used this plan. Do yourself a favor and see the potential savings you can be getting and call your mortgage lender or bank.

-M Petrone

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