New mortgage refinancing and modification options are available for the millions of homeowners at risk of losing their home. These options exist because of the bad economy, tough housing market, and President Obamas stimulus plan. Millions of homeowners can use this plan for themselves to get an affordable monthly home loan payment, and save their home from being lost.

Right now, foreclosures and mortgage defaults are at all time highs. This is leaving mortgage lenders and banks with many homes that are worth near nothing, and leave little to no room for profit. In fact, in this market, many of these foreclosed homes will actually end up costing the lender or bank money. Also, every time a home is lost, the surrounding neighborhood feels the effects. This can, and has, started driving down home prices, leaving even more homeowners at the markets mercy.

Many struggling homeowners got into their homes when times were good. Just a few years ago, the housing market seemed to be a sure investment, and homeowners had no fear getting into an ARM loan due to believing the homes value would increase. Restrictions on getting a mortgage were lax, and many homeowners got approved for loans which they realistically could not afford. As the housing market started losing its value, many homeowners were put into a bad situation. The effect has been felt, and homes are being lost to foreclosure or mortgage default at a record pace.

President Obama and his administration have realized the problems, and in an effort to help, have enacted the “Making Home Affordable” stimulus program. This stimulus plan will allow all homeowners the chance to save their home, and get a refinancing or mortgage modification into an affordable monthly payment. Under the guidelines of this program, mortgage lenders and banks will receive cash incentives when they help a struggling homeowner. This money will enable the lender or bank to approve more homeowners, and give them a reason to do so. This money will also cover potential losses a lender or bank assumes when approving a homeowner, giving a further benefit to homeowners who need help. The stimulus program says that a homeowner who receives help from a lender or bank will not have a mortgage payment that is more than 31% of their gross monthly income. This 31% includes mortgage insurance, taxes, and other fees or costs. Many homeowners will immediately benefit from this lowered payment. In order to get payments this low, a lender or bank can reduce interest rates, extend the mortgage length, or both.

Homeowners who are in foreclosure, have missed mortgage payments, or who are facing financial hardships are eligible to use this plan for mortgage refinancing or modification. Financial hardships such as loss of job, loss of some income, hospital bills, bad mortgages, or other problems need to be noted. A homeowner who wants to use this plan needs to write a letter of financial hardship. This letter should state why your problems are the way they are, and what you are planning to do about them. Also include in this letter the reason why it is so important to you that you save your home. This letter will actually improve the chances of you getting the help you need. Homeowners who are in foreclosure will see the process immediately stopped once they use this stimulus plan for themselves.

Many people can easily save their home from being lost, a lot of money, or both. This plan has over $75 billion to help homeowners. Many people are scared of refinancing or mortgage modification, but it is now easier than ever to do. Take action now before your situation gets worse.

-M Petrone

Subscribe via email

Enter your email address:

Delivered by FeedBurner