| Obama's Home Stimulus Plan has been going strong | | | | This federal program ends on June 10, 2010. |
| helping homeowners who are facing foreclosure. You | | | | Obama's Loan Modification Program: |
| may have heard of the help available, but you are not | | | | This is the federal program you have heard about for |
| sure whether you are in need of a refinance or a loan | | | | people facing foreclosure. Through this program, banks |
| modification. Maybe you should look at the basic | | | | and lenders are paid a $1000 incentive to rewrite your |
| premise of both programs and see which one sounds | | | | existing loan and get you out of the mess you are in |
| most like your situation. | | | | and get you a lower house payment. |
| Obama's Refinance Program: | | | | People usually are in default when they apply for this |
| This is for people who are not behind in their mortgage, | | | | program. This is a rescue, basically, and just in the nick |
| but would like to refinance their loan to a more | | | | of time! The lenders have the tools to lower interest |
| favorable interest rate. Traditional refinancing requires a | | | | rates, extend terms, forgive late fees, and even |
| 20% equity in the home, and after the real estate | | | | discharge some of the principal of the loan. If you meet |
| market values dropped, many people lost the equity | | | | the requirements for a loan modification, you will get a |
| they formerly had in their home. This program allows | | | | monthly payment that is less than 31% of your monthly |
| for a homeowner to refinance when they owe up to | | | | gross income. This program ends December 31, 2012. |
| 105% of the current market value of the home. | | | | Both of these Home Stimulus Plan programs have |
| With this program, you retain the equity in your home, | | | | application criteria that you must meet, but you can |
| and you get an improved interest rate. This program | | | | basically make a judgement about which one is a fit |
| requires that your past year's payment history does | | | | for you. You then need to research the requirements |
| not contain any payments more than 60 days late. | | | | and determine how to begin your application process. |