The “Home Affordability Plan” from President Obama will allow as many as 1 out of 9 homeowners get a 2% fixed rate mortgage through refinancing or loan modification. This will help stop foreclosures, assist homeowners trapped in bad loans, and restore consumer confidence to the struggling housing market. Millions are eligible to use this plan to their advantage. Find out how:

Well over $75 billion dollars have been allocated for Obamas housing bailout plan. This money will be mainly used to give cash incentives to mortgage lenders and banks to minimize their risks when approving homeowners who are at risk of losing their home, or facing other financial hardships. Now, getting approved for a home loan refinancing or modification is more beneficial, and easier than ever before for homeowners, regardless of financial situations.

The first thing this plan will address is homeowners who have been able to remain current and up to date on their mortgage payments for at least 12 consecutive months. These homeowners will have the option to get their mortgage refinanced into a fixed rate 2% home loan. This will dramatically reduce their monthly payments, and save homeowners who are trapped in bad home loans or are having financial problems. This plan also allows the chance for a homeowner to get up to $1000 a year for 5 years, deducted from their principal as a bonus for paying your home loan on time.

The second part of this plan is more focused on homeowners who have missed or been late on a few mortgage payments, and need a home loan modification to save their home. This plan from Obama instantly made all home loans from Fannie Mae or Freddie Mac eligible for a mortgage modification. However, homeowners who do not use those 2 lenders can still use this plan, it is just not guaranteed you will be approved, although it is likely. Homeowners facing a wide variety of financial hardships should write them down and explain in the letter that they do not see things getting any easier in the future and the home will be lost unless something can change. Attach this letter with your application you submit to your lender or bank. Your chances of being approved with this letter are much better than without.

Over all homeowners should look into the potential a home loan modification or refinancing could have for them. Odds are, especially using this housing bailout plan from President Obama, that the savings could easily equal hundreds of dollars per month for the remainder of the home loan. The savings easily add up to thousands of dollars. Do yourself a favor and call your mortgage lender or bank today and take advantage for yourself.

-M Petrone

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