OBAMA PLAN SAVES WASHINGTON HOMEOWNERS

The Obama Adminstration's Loan Modification Plan has opened a new door of help for Washington homeowners now facing foreclosure, or those about to lose their home.  Under new regulations, home loans issued before or on Jan. 1, 2009 will now quality for a loan modification program which expires in 2012.  Lenders able to modify troubled loans are now eligible for incentive payments and bonuses for helping homeowners before they become delinquent.  For the borrower, the government will subsidize the cost of lowering their interest rate in order to assure the payments are less than 31 percent of their gross income.

"We must stem the spread of foreclosures and falling home values for all Americans, and do everything we can to help responsible homeowners stay in their homes," stated President Obama when he signed the American Recovery and Reinvestment Act into law.  Obama then unveiled his "Homeowner Affordability and Stability Plan," which will help American homeowners while bringing some order to the housing market.  [White House, 2/18/2009] 

The government will now subsidize the cost of lowering a borrower's interest rate in order to assure their payments are no more than 31% of their gross income.  Most Washington homeowners now qualify for hundreds of dollars in monthly savings with a loan modification under the Obama administration's "Making Home Affordable" plan. Thanks to the HAMP program, a homeowner's mortgage payment cannot exceed 31% of their gross income, and because most home loans exceed 31%, the majority of borrowers are eligible for assistance.

In the past, eligible borrowers keeping up with current payments were still unable to refinance to a lower interest rate due to their homes value having decreased.  According to the White House, Under the Obama Administration's Homeowner Affordability and Stability Plan, those eligible borrowers who stay current on their mortgages will be able to now refinance into a 30 or 15 year, fixed rate loan.  

Washington homeowners can save hundreds a month by getting a home loan modification or mortgage refinance under President Obama's "Making Home Affordable" plan. Every homeowner now facing foreclosure, or about to be, should immediately begin exploring all the options available to them, including the new government programs designed to help you get a successful loan modify.