Foreclosures and mortgage defaults are on the rise. Homeowners everywhere are facing “Financial Hardships” which make paying the mortgage hard. Now, the Governments $75 billion mortgage bailout plan allows homeowners a chance to get a more affordable monthly mortgage payment through refinancing or home loan modification. Here is what you need to know:

-Homeowners need to have closed on the mortgage prior to January 1st 2009. Any homeowners who closed on their mortgage after that, can apply for an $8000 tax credit, but can not use the “Making Home Affordable” plan.

-The unpaid amount of the mortgage must not exceed $729,500. If the building is a multi unit which the homeowner lives in, the amount remaining on the home loan can be higher.

-Financial hardships which include an increase in mortgage payments, loss of job, reduced wages, hospital bills, and pretty much anything that is out of the homeowners control. Homeowners simply need to write down their hardships, a budget, and explain why refinancing and saving your home is so important. Include this letter, and all relevant proof, and turn it in with your mortgage refinancing or home loan modification application.

-Homes everywhere have lost value as a result of the bad economy and worse housing market. Now homeowners can get approved for a mortgage refinancing or modification even if they owe up to 5% more than their homes actual worth. This helps millions of homeowners who would have never been approved prior to this mortgage bailout plan.

Homeowners should jump at this chance to get a refinancing or home loan modification. Do not risk losing your home to foreclosure or defaulting on your mortgage. Take advantage of the Governments plan and get a more affordable mortgage payment, or save your home altogether.

-M Petrone

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