Refinancing a home mortgage can be done for many different reasons. A homeowner may want…
In the past few years Americans have experienced some drastic changes in the economy and one of the hardest hit markets has involved housing. Since so many individuals were given home loans that they now find it difficult to pay, there has been an influx of foreclosures and short-sales that have only added to this problem. In the recent past most of the news that involves the housing market has been depressing to say the least; however there is a new plan from Washington that can give current homeowner’s hope in this desperate time. It is called “Making Home Affordable” Stimulus Plan and it is designed to help individuals in need to keep their homes.
This plan is designed to help millions of individuals keep the home they already own by allowing them to avoid drastic measures such as selling their home or being forced into foreclosure. This plan allocates $75 billion dollars to families who want to save their house by refinancing their mortgage for a lower monthly payment. As with any government program there are certain regulations and eligibility requirements that you need to meet before you will be able to take advantage of this program.
The regulations and requirements are relatively straightforward and your financial institution may be able to help you through the process. This plan is designed for those that have suffered from a “hardship”. This can include anything from the loss of a job, medical bills, higher mortgage payments, loss of pay, or any other event that is unforeseeable and out of the homeowner’s control. It is also important that home loans was closed or signed before January of 2009 to qualify for this protection plan. There are more regulations that are attached to this plan such as this is only a “one time chance” to save your home. It cannot be used more than once by the same individual. It is also important that the person applying for this protection has never filed a bankruptcy.
Those who are interested in using this stimulus package to help save their home should know that the value of their home loans should be less than $729,000 and their monthly mortgage payments are 31 percent or more than the combined gross income of the household. In order to help as much people as possible there is also a regulation that states that home loans modification should drastically reduce the individual’s monthly mortgage payments, and will be lower than 31 percent of the family’s total gross income.
While all of this information might sound overwhelming and complicated home loans modification plan could help many people keep their homes without the stress and embarrassment of foreclosure or being forced to sell their piece of the American dream. While this plan will not fit everyone’s needs there are many benefits to considering this stimulus package. This maybe the keep to saving many people from financial ruin without forcing them to give up their home, it will also help those who are eligible put the money they save from their mortgage on other debts which will help grow our failing economy.