Many homeowners have not taken advantage of President Obamas “Making Home Affordable” stimulus plan. While this plan offers mortgage refinancing help for millions of struggling homeowners, only a small percentage of them are using it. Here are some of the problems homeowners are experiencing when trying to use this mortgage bailout for themselves.

A major problem is the fact that even with Government cash incentives, mortgage lenders and banks are reluctant to offer refinancing options to homeowners. That is because they have taken a huge financial hit in recent months, and are looking for sure things. That means that the only homeowners getting a mortgage refinancing right now are the ones in great financial shape, with good credit to match. This is leaving millions of homeowners who are struggling with limited to no options when looking for mortgage refinancing help.

Yet another problem seems to be homeowners getting, and returning, the appropriate paperwork on time and completed. While this seems simple, homeowners who use Obamas stimulus will have their finances scrutinized which means a lot of paperwork is needed. Sometimes, homeowners are late returning paperwork or answering questions which may lead to their application being denied or shuffled to the back of the pile.

Finally, another major hurdle mortgage lenders and banks face with Obamas plan is the fact that homeowners with upside down mortgages can get now get help refinancing a mortgage. This means that many homeowners who are underwater either through their own fault, or due to the economy and housing market may actually end up costing the mortgage lender or bank money when refinancing with Obamas plan. While lenders and banks want to help, they are not in it to lose money.

While this plan can, and is, actually helping people, it is not helping as many people as anticipated when it was made. Homeowners everywhere should carefully research these stimulus options and see what benefits may be available to them.

-M Petrone

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