The tough economy and worse housing market is making it harder for homeowners to pay their home loan every month. President Obama is aware of the problems facing homeowners everywhere and has enabled his “Making Home Affordable Plan” to help homeowners. This plan will allow a homeowners to get a refinance or loan modification into a affordable monthly payment. Here is how this program can help you:

-Mortgage lenders and banks now will get a cash incentive from the Government for every homeowner they assist with a loan modification or mortgage refinance. This means that being approved for refinancing or modification is now easier, and more beneficial for homeowners than ever.

-Only mortgages with a balance of less than $729,500 will be allowed to use this plan from Obama to refinance or modify their mortgage.

-Homeowners who live in the home as a primary residence can use this plan. Second homes, vacation or rental properties will not be covered under Obamas housing bailout plan.

-Home loans which are financed or backed by either Fannie Mae or Freddie Mac are automatically eligible to get a home loan modification. Under Obamas guidelines, the new monthly payment will not exceed 31% of the homeowners gross monthly income. Currently, a lot of homeowners pay 50% or even 60% of their income towards their mortgage.

-Homeowners who use this plan to their advantage and have monthly debts, including mortgage payments, which exceed 51% of their gross monthly income need to attend free Government provided credit counseling. This helps ensure homeowners do not get themselves into a bad financial situation again.

Overall this plan will help over 9 million homeowners get a mortgage refinancing or modification. This plan will curb the number of foreclosures, restore home prices, and help regain consumer confidence in the housing market. This will help mortgage lenders and banks from tightening up their credit restrictions so much that only a small percentage of homeowners would apply. Now, mortgage lenders and banks have the tools they need to approve more applications than ever before. Do yourself a favor and take advantage of Obamas plan today.

-M Petrone

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