Homeowners all across the country are feeling the effects of this tough economy and worse housing market. Foreclosures are at an all time high, home values are declining, and homeowners are having a harder time paying their home loan every month. Luckily, President Obama has recently announced his housing bailout plan. This plan will save homeowners hundreds per month on their mortgage, and will even help save homes from foreclosure. Here is how it all works:

Mortgage lenders and banks will now receive a cash incentive for every at risk homeowner they approve for mortgage modification or refinancing. This will help ease their risks, allowing mortgage lenders and banks to approve more needy homeowners. That means that being approved now, even if you have been denied before, has never been easier, or more beneficial for a homeowner. Lenders and banks realize that foreclosures hurt everyone involved, and at the rate they are happening something needs to be done. This plan should reduce foreclosures and mortgage defaults which will help slow the rapid decline of the housing market. After awhile home values will raise again as consumer confidence is restored in the real estate industry.

Financial hardships such as a loss of job, reduced income, hospital bills, or other debts can be used as a condition to get approved for Obamas plan, and get a loan modification or refinancing. These financial hardships should be documented, and turned in with any loan applications you file. Along with these documents their needs to be a handwritten letter stating your financial hardships, signed by you. Applying for a mortgage refinancing or modification with a financial hardship could actually improve your odds of being accepted under the guidelines of Obamas plan.

Overall millions of homeowners can save hundreds per month on interest savings alone, by taking advantage of Obamas housing bailout plan. Refinancing or mortgage modification have never been easier to get, or more beneficial. See how much you could save by using this plan for yourself.

-M Petrone

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