Homeowners, did you know that a $75 billion plan from President Obama will help you refinance or get a mortgage modification? This mortgage stimulus plan is designed to help struggling homeowners get a more affordable monthly mortgage, and avoid defaulting or foreclosure. Applying and getting approved for this plan is easy. Here are some things you should know:

-Homeowners need to have a remaining balance of less than $729,500 remaining on their mortgage.

-A homeowners mortgage payment should be higher than 31% of their gross monthly income. This Obama housing stimulus plan calls for mortgage lenders to lower home loan payments to 31% of a homeowners income. While this sounds high, it is a 20% or more reduction in payments for millions of homeowners.

-Homeowners can not have declared bankruptcy or have used this plan before.

-Mortgages which are worth up to 5% more than the homes actual market value can still be eligible to get approved for a mortgage refinancing or modification through the Governments mortgage bailout plan. Previously, homeowners needed around 20% equity in their home to get a traditional mortgage refinancing or modification. This helps homeowners who are stuck in a bad home loan, or have seen their property values drop as a result of the bad economy.

-Homeowners who are facing “Financial Hardships” can improve their chances of getting approved by writing a “Letter of Financial Hardship”. This letter should include the reasons your finances are in bad shape, what you plan to do about it, and why a home loan modification is crucial. Also, be sure to include all documents such as bank statements, bills, and other related information with this letter. Turn it all in at the same time with your refinancing or home loan modification application.

Getting a mortgage refinance or modification has never been easier or more beneficial. This $75 billion plan will help a lot of homeowners keep their homes, and not lose them to foreclosure or mortgage default. Mortgage lenders and banks all over are taking part in this plan. A homeowner should take advantage of this great time to refinance, or get a mortgage modification, and contact their bank or mortgage lender today. The savings that an average homeowners can get is in the hundreds of dollars per month. Take action now.

-M Petrone

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