President Obama knows that homeowners everywhere are struggling financially, and has enacted his $75 billion “Making Home Affordable” plan. This plan will a homeowner the chance to refinance or get a home loan modification into a fixed rate 2% mortgage.

Foreclosures are at an all time high, and more are expected, but thus plan will help millions of homeowners facing foreclosure or other financial problems save their home. With the economy and housing market in such bad conditions, the mortgage bailout plan from Obama will reduce foreclosures and save homeowners. This will help restore some market stability and prevent home values from dropping even further. Many homeowners actually owe as much as 5% more on their mortgage than their home is worth. Luckily for these homeowners, this “Making Home Affordable” plan from Obama will allow them to refinance or get a loan modification even if they owe more than their homes market value. Situations like this would have been very hard to be approved for when looking into getting a mortgage refinancing or modification, but now with Obamas plan, more homeowners than ever are eligible.

A large part of the over $75 billion dollars in this plan will be used to give cash incentives to mortgage lenders and banks who approve at risk homeowners, or those who are going to lose their home due to foreclosure a mortgage refinancing or modification. This means that with the risks of approving at risk homeowners is minimized and mortgage lenders and banks are approving more homeowners than ever before. Homeowners who have attempted refinancing or mortgage modification, only to be turned down, should try again using the guidelines set in President Obamas “Making Home Affordable” plan. The savings that can be had are easily in the hundreds of dollars per month, or it may also help you avoid foreclosure or mortgage default. Call your lender today and see the potential savings to be had through refinancing or home loan modification.

-M Petrone

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