Obama Mortgage Rescue Plan 2011: A Loan Modification Halts Foreclosure

You may be able to take advantage of a government home rescue program that will give you a mortgage rate modification of 2%. Obama has implemented a very aggressive loan workout plan that is designed to help homeowners facing a financial hardship and at risk of defaulting on their home loan. There are millions of American’s who may be able to get the relief they need using this bailout program.

Homeowners facing financial hardships can get refinancing or home loan modification into a new, low interest, lower payment, mortgage. This is possible because of new refinancing an mortgage modification options which are available through Obamas housing stimulus plan. These hardships can include things such as a loss of job, reduced income, hospital bills, and a lot of things which are out of the homeowners control. Typically, a homeowner would have a hard time getting approval for refinancing or modification of their home loan, but this plan helps. A homeowner should write a brief letter stating their financial hardships, what they plan to do about them, and why refinancing is so important, and include it with your application.

Obama’s rescue plan is called Home Affordable Modification. It is funded by $75 billion in stimulus money-this is paid for with your tax dollars, so do not hesitate to find out if you qualify and use this program to help you stay in your home. Here are the basics of the plan and what it takes to qualify and apply.

Mortgages that are worth more than the homes market value are also eligible for refinancing. Typically a homeowner would need 20% equity in their home, or the cash difference to get approved for a refinancing. Now though, this plan from Obama allows homeowners a chance to refinance even if they owe more than the homes value.

The approval process will involve completing a simple financial statement that details your income and expenses. This will provide your bank a snapshot of your financial situation and also let them know if you fit into the approval guidelines. This is the most important part of your application-what you show on this form will largely determine if you are approved or not. Take the time to get some directions on the right way to complete your form so that you have the best chance of success.

Learn more about Obama Mortgage Relief Plan Qualifications.