Recently, a new mortgage stimulus plan has been announced which will help millions of homeowners get a more affordable monthly mortgage payment. This plan, also called the “Making Home Affordable” plan, will help homeowners avoid foreclosure or mortgage default, and allow them to get an affordable mortgage. Here is how it works, and who is eligible:

-Over 8 million homeowners are eligible to use this plan. The “Making Home Affordable” plan is primarily targeted towards financially struggling homeowners. If you are in foreclosure, or scared of facing foreclosure, odds are you will qualify for help from this plan.

-Homeowners facing financial hardships need to include a letter stating those facts, and include it with their application. This letter should include the reasons for your financial problems, potential solutions, and a budget. This will show the lender you are truly facing financial problems, and help you get the help you need.

-Since so many homes have dropped in value, this plan also has help for those homeowners. If a home has lost 15% or more in value, that home is eligible to get assistance from this Government stimulus program. Homeowners who have a home which has lost so much value would have had a very hard time getting approved for a refinancing or mortgage modification before this plan existed.

-Homeowners who get help form this plan will get a new monthly mortgage payment which does not exceed 31% of their gross monthly income. To achieve this, mortgage rates will be lowered to as low as 2% or the length of the loan can be extended. Sometimes, a combination of the two will be needed to get the payments low enough.

-Homeowners who want to use this plan must have closed on their mortgage before January 1st 2009.

-All mortgages backed or provided by Fannie Mae or Freddie Mac are automatically eligible for modification. The financial situation of the homeowner does not matter. All mortgages from either of those 2 companies are able to get modified.

Mortgage modification and refinancing is easier to get than ever before. This plan will prevent millions of homeowners from losing their home. Use this program for yourself if you are struggling.

-M Petrone

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