There is over $75 billion in cash incentives being given to mortgage lenders and banks who approve “at risk” or “financially struggling” homeowners. This is all because of President Obamas “Making Home Affordable” plan. Millions of homeowners, a lot of which would not have been given approval prior to this mortgage bailout, are now refinancing and getting home loan modifications easier than ever.

These cash incentives make it easier for mortgage lenders and banks to approve homeowners with bad credit, a bad mortgage, high debts, or a home which has lost value. With the financial risks minimized thanks to the stimulus money, the lenders and banks are approving millions of homeowners for refinancing or home loan modification. Here are some of the huge benefits of this plan for a typical homeowner:

-Mortgages can be worth up to 5% more than the homes market value. This will help people who have a bad mortgage, or who's home has severely dropped in value. Typically, 20% equity or the cash equivalent would be needed, but this Obama housing stimulus plan has changed that for the time being.

-Homeowners who pay more than 31% of their gross monthly income and have a mortgage financed by Freddie Mac or Fannie Mae are in luck. These homeowners are automatically eligible for mortgage modification into a new monthly mortgage rate which is equal to or less than 31% of their income every month.

-With such a bad economy, many homeowners are facing “financial hardships”. Now these homeowners can apply, and use these hardships to improve there chance of getting approved for mortgage refinancing or home loan modification. Homeowners should include documents that prove their hardships, and turn them in with their mortgage modification application.

Overall millions of homeowners can benefit from this amazing chance to get a more affordable home mortgage. Take advantage now, and do yourself a favor.

-M Petrone

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