President Obamas “Making Home Affordable” plan is a $75 billion mortgage bailout plan. This plan will help millions of homeowners get a more affordable mortgage, and avoid foreclosure, or loan default. Here is what you should know, and the requirements for eligibility:

-The mortgage must have been signed and closed on before January 1st 2009. Homeowners who closed on their loan after this are not eligible for this plan, though they are eligible for a special $8000 tax break.

-The mortgage holder must actually live in the home to be refinanced or modified as a main residence. Homes which are considered a second home, investment, or vacation property can not use this plan. In fact, homeowners with multiple homes have less chance of getting approval for mortgage refinancing or modification, even with this Government bailout plan.

-The amount of equity or cash a homeowner must have has been dramatically reduced, allowing millions of homeowners the chance to refinance or modify their home loans. Now, mortgages which are worth up to 5% more than the homes actual market value can be approved for a refinancing or home loan modification through the guidelines of the “Making Home Affordable” plan.

-Homeowners who have lost their job, face medical bills, have seen their mortgage payments increase, or are facing other “financial hardships” can use this plan and get a mortgage refinancing or modification. This will allow the homeowner to pay down their other debts, improve their financial position, and keep their home.

Absolutely no one benefits from a homeowner who is forced out of their home through foreclosure or mortgage default. Right now, mortgage refinancing and modification have never been easier to get or more beneficial for the struggling homeowner than they have ever been. Homeowners should contact their mortgage provider and ask about getting a mortgage refinance or modification with the Governments bailout plan.

-M Petrone

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