Homeowners who have a mortgage which is financed by either Fannie Mae or Freddie Mac are automatically eligible for home loan modification. The Governments $75 billion dollar “Making Home Affordable” plan allows automatic, money saving, mortgage modification for all homeowners with a mortgage from Fannie Mae or Freddie Mac. Here is how to use this plan for yourself:

-The home loan must have been closed on and finalized on before January 1st 2009.

-All homeowners who use this plan must live in the home as their main residence. Homeowners with a second home will not find assistance for that mortgage, only their primary home loan.

-The mortgage bailout plan calls for mortgages to cost no more than 31% of a homeowners gross monthly income. This will be a 20% or more reduction for many homeowners.

-In order to meet the requirements of a 31% mortgage cost, home loan interest rates can be lowered to as low as 2%, or even extended to 40 years. Both of these options should make the mortgage payment much lower.

-Homeowners can contact Freddie Mac or Fannie Mae directly, and ask them for help with getting a home loan modification for themselves.

-Financial hardships, which include almost any financial problem which the homeowner can not control, will also play into how low the mortgage is. The more problems a homeowner is facing financially, the lower their mortgage payment will be every month.

Homeowners should take action and not let their home cost them more than it should. Contact Freddie Mac or Fannie Mae today and inquire about a mortgage modification. The odds are you are going to get approved, and see a significant reduction in your home loan payment.

-M Petrone
www.RefinancingCondo.com

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