Homeowners all across the country are struggling to make ends meet. Many homeowners are going through financial problems, and are finding it very hard to make their mortgage payments. This has led to an all time high foreclosure and mortgage default rate. Because of this, President Obama announced his “Making Home Affordable” plan, to help homeowners. This plan is designed to help struggling homeowners by offering them new home refinancing or modification options which will drop their payments, and enable them to stop foreclosure, and keep their home. Here is what you should know:

There is over $75 billion in funds to assist homeowners. This money though, will be given to mortgage lenders and banks who follow the guidelines, and offer mortgage refinancing or modification options to homeowners. With this money, the lenders and banks are taking on less risk, and able to help more homeowners. Even people who have been declined in the past are finding it much easier to get the help they need this time around. This is because there are many benefits for homeowners who would have a hard time getting help without this plan. Some of the biggest benefits include:

-Monthly home loan payments that are not higher than 31% of a homeowners monthly gross income.

-Mortgage interest rates can be reduced to as little as 2%.

-The ability to extend a mortgage in length to up to 40 years in order to get the payments to an affordable level.

-Homeowners with bankruptcy or bad credit can get help for their home loan using this program.

-Homes which have dropped in value since purchasing them will now be able to get help refinancing or modifying into a better mortgage.

This is all possible because of President Obamas plan. It is obvious that the economy is hurting. That has led to a tough housing market where homes are dropping in value, foreclosure is at an all time high, and many homeowners just are not able to make their mortgage payments. That is why this program is designed to help struggling homeowners.

Instead of letting more homes be lost, lenders, banks, and the Government, would like to see the home loans modified or refinanced and give the homeowner a real chance to save their home from being lost. The plan is based around the idea that regardless of what else is happening, if a homeowner is able to actually afford their home loan payment, they will make it.

Millions of homeowners are able to use this plan for themselves and get the help they need to prevent their home from being lost. Do not let bad credit, or other financial problems hold you back. Find the help you need today, and save your home.

-M Petrone

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