Fannie Mae and Freddie Mac mortgage holders are in luck. New Government programs allow those home loans to be modified into a more affordable monthly mortgage payment. This is a result of President Obamas “Making Home Affordable” plan which is designed to help millions of homeowners avoid losing their home. Here is how it works:

Home loans from Fannie Mae or Freddie Mac are now automatically eligible for a modification. The rules for this modification come from the Presidents stimulus plan. According to the plans guidelines, homeowners will not have to pay more than 31% of their gross monthly income towards their monthly mortgage payment. This 31% total includes taxes, home insurance, and other fees and costs. This will be accomplished by reducing interest rates, extending the length of the home loan, or both.

This plan was put into place because of the bad housing market, and the worse economy. With an estimated 1 in 8 homeowners facing losing their home, this plan will help millions of people. Another benefit of this plan is that if a homeowner is already in foreclosure, that process will stop once the home loan modification starts.

Overall, this is an amazing chance for homeowners to fix their current financial situation, save their home, or save a lot of money. Either way, many people have already used this plan for themselves, but many more people still can. Contact Freddie Mac or Fannie Mae and see what they are able to do for you.

-M Petrone

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