Mortgage refinancing or modification is not a decision that should be taken lightly. While the process seems intimidating, and hard, it does not have to be, especially now. President Obama announced his “Making Home Affordable” plan, which allows homeowners to get approved for refinancing or home loan modification into an affordable, monthly payment. This plan will save millions of homes from being foreclosed on or lost to mortgage default.

This plan will be funded by over $75 billion in Government money. Most of this money will be given to mortgage lenders and banks as an incentive to help struggling homeowners, and approve their mortgage refinancing or home loan modification applications. Also, besides covering some of the mortgage lenders potential losses, this incentive money will cover all closing costs and fees associated with refinancing or home loan modification. This is great news for struggling homeowners, as odds are since their struggling to make their mortgage payments, they do not have a few thousand dollars to pay closing costs or fees.

Homeowners can also count on an easier approval process than ever before. While mortgage lenders and banks are very strict about being able to verify income, and make sure you are truly struggling, they are also more lenient in approving applications these days. With the absurdly high number of mortgage foreclosures and home loan defaults taking place, this plan could not come at a better time for the average homeowner.

Homeowners who are looking for a way to save money, or their home, should definitely look into this mortgage bailout plan from Obama. For most homeowners, the benefits of this mortgage stimulus far outweigh any negatives. For other homeowners, this plan may be exactly what is needed to save their home from being lost.

-M Petrone

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