President Obamas “Making Home Affordable” plan was announced as a way for struggling homeowners to find financial relief, save money, and prevent their home from being lost. However, while it was claimed that millions of people could get help from the stimulus, the reality is that many people are finding it very difficult to use this plan for themselves. Here are some tips for homeowners who are, or have been, trying to get a mortgage refinancing from President Obamas stimulus plan.

This stimulus plan, announced in early 2009, was expected to have a dramatic effect on the housing market, and overall economy. However, many homeowners have hit roadblocks and other obstacles in the mortgage refinancing process which are not letting them get help from Obamas stimulus. Some of the most common problems homeowners are facing include:

-Not being far enough behind on their home loan payments.

-Not having the correct paperwork or not being able to verify things such as income.

-Receiving bonuses, or raises in salary often make homeowners ineligible to get help even if they were approved before the bonus or raise took place.

Of the three, the biggest problem by far is the lack of obtaining the proper paperwork from homeowners. Many people are unable to verify their income, or are unable to produce documents that can prove it. Also, some people have not paid their taxes, or do not even have a bank account, which makes this housing stimulus plan impossible to qualify for. Other people make too much money, or have a home loan that is not necessarily in immediate danger of being in default. However, as mentioned earlier, the biggest problem by far is lack of paperwork or lack of ability to verify financial related information.

The Obama stimulus plan require financial verifications and proper paperwork before someone can get help from it. This is an attempt to avoid housing market problems like this again in the future. Since the housing market began to collapse, mortgage lenders and banks have really increased the attention to verifying information and paperwork. Before when everything seemed great, a mortgage lender or bank would not necessarily deny you due to not having a verifiable income or for having incomplete paperwork. Now though, things are different. This is in addition to the fact that in order to fully take advantage of President Obamas “Making Home Affordable” plan, you absolutely must be able to verify finances.

The best thing homeowners can do for themselves in order to get help from the stimulus plan is prepare. Get all of your financial information in order and have it prepared. This means reviewing it for errors and mistakes and getting them corrected prior to applying. Also, know what your mortgage lender or banks requirements are, and take it from there.

-M Petrone

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