Buy A Foreclosure Home

Have you been affected by the recent economic downturn and tried to get a home mortgage refinance only to find you did not qualify? You might feel the need to reduce your monthly payments because you have been laid off from your job or maybe you you’ve tried to sell your house but could not. If so, you are just one of the many citizens President Obama targeted when developing the plan called “Making Home Affordable”.

About “Making Home Affordable”

What this package has done for the American homeowner is to loosen the restrictions on home mortgage refinance options. It has also required banks to allow for mortgage modification in certain circumstances. Many of those who own a home and are in the midst of a difficult financial situation are eligible for this program.

The president’s goal in enacting this piece of legislation was to ultimately provide a positive effect on the real estate market. He is also hoping that the millions of citizens negatively affected by the recessionary economy will find relief, and be able to avoid foreclosure.

As you may have seen in recent news reports, Making Home Affordable was a major part of the $75 billion bailout plan Congress approved. Mortgage lenders received the bulk of cash incentives in order to cover modifications to current loans and also to approve new mortgages. For homeowners or buyers, this has opened up many opportunities and increased competition from lenders for their business.

Is the Making Home Affordable Plan Appropriate For You?

Anyone who felt the need to seriously consider a home mortgage refinance due to financial difficulties or the real estate market prior to now will be happy to know this package may be just the answer they were waiting for.

According to the package, homeowners are eligible to modify the terms of their mortgage so that the monthly payment equals 31% or less of their gross income. Because of economic woes and the failing real estate market, many Americans are now paying up to 50% of their monthly income for their home alone.

Mortgage lenders are required to adhere to a set of guidelines outlined as part of the legislation in the Making Home Affordable package. In some instances they are able to offer a very low 2% interest rate. The money they are losing will be covered by the government’s cash incentives as part of this plan.

Eligible homeowners must meet certain criteria to receive these great home mortgage refinance terms. First, they must be current on their loan, and stayed current on all payments in the last 12 months with no payment past due for more than 30 days. If they are seeking the 2% interest rate, they will have to sign a letter of Financial Hardship which outlines the reason for their loss of income. Another way to get the 2% rate is by proving that the value of the real estate mortgaged has fallen by at least 15% in value. And any homeowners who used Fannie Mae or Freddie Mac as their mortgage lender are automatically qualified.

Under the terms of the Making Home Affordable package, a home mortgage refinance might now be a very realistic proposition, as well as a sound financial decision. Act now to find out what your options are and if you qualify to save thousands of dollars annually with a lower mortgage payment.