Homeowners everywhere are feeling the effects of a bad economy, and worse housing market. Foreclosures and mortgage defaults are at all time highs, and people are getting desperate. Luckily, President Obamas mortgage stimulus plan, will help millions of homeowners. New refinancing and mortgage modification options are available to homeowners in all kinds of situations, here are some examples.

-Homeowners with a mortgage that is worth more than their homes value, would typically be denied refinancing or mortgage modification. Now though with Obamas plan, these homeowners stand a much better chance of being approved, and will get a cheaper monthly mortgage payment.

-Mortgages from Fannie Mae or Freddie Mac are automatically capable of modification. This plan calls for monthly home loan payments from these two lending giants to be reduced to 31% of a homeowners gross monthly income. Mortgage interest rates can be lowered as low as 2% to make this happen. Also, a mortgage may be extended up to 40 years in length to make this 31% payment a reality if necessary.

-Homeowners facing a wide array of financial hardships, some of which include, loss of job, hospital bills, and reduced wages, can get approval for refinancing easier than ever. Homeowners should include a letter stating their financial problems, what they plan to do about it, their estimated budget after the refinancing, and why it is important that you save your home. Include this letter with the application when applying for refinancing or home loan modification. This will increase your chances of getting approved, and saving money or your home.

Mortgage refinancing and modification has never been easier than it is now. Millions of homeowners can get qualified for a money saving mortgage plan from Obamas stimulus. This is a much better option than leaving your home or losing it to foreclosure. Homeowners should exhaust all options possible prior to being forced out of their homes. This plan will help a lot of people lower their payments, and save their home.

-M Petrone

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