The Government mortgage bailout plan makes getting a home loan modification through Bank of America easier than ever for homeowners who are financially struggling. This $74 billion mortgage stimulus plan allows millions of homeowners to reduce their interest rates, and get a more affordable monthly home loan payment. So, do you know how to take advantage?

Homeowners who have been denied a home loan modification from Bank of America (BoA) in the past, should consider applying again. This “Making Home Affordable” plan from Obama has allowed millions of homeowners, who would have no chance of approval before, the chance to get a better home loan through Bank of America. Some of the benefits of this plan are:

-Mortgage interest rates lowered down to 2%

-Home loans may be extended in their length, up to 40 years total, in order to meet the requirements for monthly home payments a homeowner should pay according to the bailout plan.

-Homeowners may get portions of the principal on the mortgage deferred.

Some homeowners may see these things combined so that their mortgage payment does not exceed 31% of their gross monthly income. This is the maximum amount allowed for a homeowner to have to pay if they are approved for a home loan modification from this mortgage stimulus plan. While 31% may seem like a lot to some, a lot of homeowners pay 50% or more of their income towards their mortgage. A 20% reduction would instantly save most homeowners hundreds of dollars every month.

There are additional benefits for homeowners who use Bank of America for a home loan modification. These include no hassle, no cost, and no negotiation necessary home loan modification arrangements. The rules of the Governments plan call for a straightforward approach to save homes, and Bank of America understands that. Homeowners who are getting a home loan modification through the Governments plan should never have to pay any closing costs or fees.

Homeowners getting a home loan modification from Bank of America should do their own research, and have some idea of what to expect. Getting the necessary paperwork and home loan modification applications filled out accurately and complete should be a priority. If these few things are done, your chances of getting approved go up dramatically.

-M Petrone

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