President Obama knows that homeowners are struggling. The economy is down and the housing market worse. 10% of homeowners are facing foreclosure, with even more expected. People are losing their jobs, companies are failing, and property values are dropping. Luckily, Obamas plan will help millions save their home. Here is how it works.

In March of this year, President Obamas “Making Home Affordable” plan went into effect. This $75 billion plans aim is to help struggling homeowners refinance or modify their current mortgage into a more manageable monthly payment. This plan will help millions of homeowner get their finances in order, while at the same time save their home from foreclosure.

Here are some of the more crucial points of President Obamas “Making Home Affordable” mortgage modification or refinancing stimulus plan:

-Banks and mortgage lenders would receive a $1,000 cash incentive for every customer whose loan is modified or refinanced under the terms of this plan.

-Things which were typically required to modify or refinance a home mortgage loan such as, 20% equity in your home, are no longer needed. A homeowner can now modify their home loan even if they owe up to 5% more on it than their home is actually worth. This will help millions of homeowners who have seen their property values drop in this housing crisis.

-Homeowners who take advantage and modify their home loan will receive a monthly mortgage payment that is no more than 31% of their current gross monthly income. A lot of homeowners currently pay in excess of 50% of their income towards their home loan, the savings from this alone could equal hundreds of dollars every single month.

-Their will be no closing costs or other fees for homeowners who are approved for this Government sponsored home mortgage modification program.

-This housing bailout plan is only for a homes where the primary homeowner lives in. This plan will not cover either second homes, vacation homes, or investment properties.

-All claimed income, and debts, must be verified through bills, tax returns, or pay stubs.

Overall, this home mortgage refinancing and modification plan from the Government and President Obama will have a major impact on the economy. This will enable homeowners to stay in their homes and avoid foreclosures and mortgage defaults. The ease and amount of savings this plan offers means that right now is a really good time to at least look into the potential benefits a home mortgage refinance or modification may have for you.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner