President Obamas mortgage bailout plan will let millions of homeowners refinance or modify their home loan into an affordable monthly payment. Regardless of your situation, getting help saving your home, a lot of money, or both through refinancing or mortgage modification is easier than ever. Here are some of the big points of President Obamas stimulus plan:

In the past, a homeowner with an upside down mortgage, bad credit, or other financial problems would have a hard time finding help refinancing or getting a home loan modification. These days though, things have changed. Right now, foreclosures and mortgage defaults are at all time highs. In addition to that, the housing market is weak, and many homes are worth much less than when they were purchased. Mortgage lenders and banks do not want to deal with having to foreclose on any more homes that they may lose money on. They would much rather help a homeowner get into an affordable monthly mortgage payment and keep their home. Also, President Obamas $75 billion mortgage bailout provides some cash incentives and insurances to lenders and banks who help homeowners by following the stimulus programs rules.

Mortgage lenders and banks must follow the guidelines for refinancing or mortgage modification if they want to get cash incentives from the Government. Some of the rules include:

-Homeowners will not pay more than 31% of their income towards their monthly mortgage payment.

-Homeowners can owe up to 25% more on the loan than the homes actual market value.

-Helping homeowners who are facing financial hardships or who have bad credit.

These are not all the benefits available to homeowners, but these are some of the biggest ones. These are the main reasons that homeowners are facing losing their home. The Obama stimulus plan aims to help over 8 million people by offering them new mortgage refinancing and modification options.

Homeowners should take advantage of this great time to refinance and save a lot of money, or your home from being lost. Take action today and contact your mortgage lender or bank and see what options you have.

-M Petrone

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