Homeowners everywhere are having a hard time making their monthly home loan payments. It is estimated that 1 of 8 homes is in foreclosure. For these reasons, President Obama has announced his “Making Home Affordable” plan. This stimulus plan will allow a homeowner to refinance or modify their mortgage into a more affordable payment. Here is how it works:

-Homeowners must live in the home to be refinanced or modified as a primary residence.

-Mortgages backed by Fannie Mae or Freddie Mac are automatically eligible for a modification into a new, more affordable, monthly payment. The new home loan payment can not exceed 31% of a homeowners gross monthly income. Many homeowners currently pay 50% or more for their home. A 20% savings in your mortgage every month would quickly add up to huge money.

-The mortgage must have been closed on and signed off on before January 1st 2009

-Homes which have dropped in value as a result of the economy and housing market can use this plan to get a better mortgage through refinancing and home loan modification. Homes everywhere have dropped in price due to, lack of consumer confidence, and foreclosures, which lower the value of all homes in the neighborhood.

-Homeowners who are facing “Financial Hardships” of all kinds including, loss of job, reduced wages, hospital bills, bad mortgages, and a long list of other financial problems, can use Obamas plan to get a new, more affordable, monthly mortgage payment.

The “Making Home Affordable” plan from Obama has over $75 billion in funding to help homeowners get a better mortgage through refinancing and mortgage modification. Their has never been a better time to refinance or modify a home loan, and it has never been easier. Mortgage lenders and banks are working with Obamas plan and approving more applications than ever. Homeowners who have been turned down before should still apply using Obamas plan. Homeowners who need to save money every month, or want to save their home from foreclosure, need to jump on this plan now and take advantage.

-M Petrone

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