Homeowners that received their financing from Fannie Mae or Freddie Mac have become eligible for mortgage refinancing and modification. President Obama has created the “Making Homes Affordable” plan that has new guidelines that must be followed.

Not sure what or who would qualify for this plan? Well here are a few requirements:

- First of all if the owner has declared bankruptcy they are not eligible to modify or refinance using this new stimulus plan.

- If the home is residence to more than a single household that home will also not be eligible for the housing plan.

- Those whose homes have dropped in value are eligible. If the homes is worth less than you are paying for in mortgage you are eligible for this plan.

- Any loans that were issued, backed or financed by Fannie Mae or Freddie Mac are eligible for the housing plan automatically.

Today more than ever before refinancing and mortgage modification is favoring the borrower. Now there is a limit to the amount a mortgage can be that was put in place by the Federal government. They have limited it to 31% of the homeowners’ total monthly income and it can not exceed that. Along with the limitation of mortgage payments the borrowers’ total debt can not exceed 55% of their monthly income. The Housing and Development department, HUD, also offer help and counseling for those that are interested in participating. The agents that are provided by the HUD will speak on your behalf and try to work out the best possible deal for your situation. Look into your options and do some basic research to make sure that you are getting the deal that works best for you and your situation.

-M Petrone

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