Many homeowners that have adjustable rate mortgages and a home that may have dropped in value are facing a looming crisis… When those two factors are combined refinancing with a traditional mortgage is next to impossible and with increasing payments many people find paying their mortgage difficult if not impossible..
In the course of time, the Obama government launched a friendly mortgage rescue plan. According to Obama, this plan would help around 9 million struggling homeowners to cope with this crisis. This plan is one of the most extensive and aggressive plan to cover the maximum needy people. To make this plan successful, Obama announced to provide $275 billion from the government’s fund.
This plan is tailored in such a way that you can make your monthly loan payments more affordable. Its objective is classified as – 4 to 5 million “responsible homeowners”, who would get the facility of refinance and for the remaining 3 to 4 million homeowners, the risk of imminent default will be lowered by providing the facility of “homeowner stability initiative” which will ultimately reduce their monthly installments.
The new bill is offering financial aid to decrease loan monthly payments to an amount that is no more than 31% of borrowers’ monthly incomes. The new loan modification plan is exempting many borrowers from housing taxes as an additional mean to relieve their burden. On the other hand, the federal government is encouraging creditors to accept more loan modification plans by giving cash incentives for every loan modified. A lender will receive 1000$ for each successful loan modification that goes well for 12 months.
The US government debt assistance is offering more hope to those who are struggling to meet the monthly payments of loans that are ballooning at a rather steep rate. Obama is pumping in billions of dollars to keep hundreds of thousands of Americans in their homes and prevent foreclosure.
Learn more about Obama Mortgage Relief Plan Qualifications.