president Obama Foreclosure Assistance
President Obama recently announced his plan to try to stop the huge numbers of foreclosures that have been happening in the United States. Although massive, the plan wasn’t designed to completely stop foreclosures from occurring. Read on to find out if President Obama’s plan can help you stop foreclosure on your home.
In simple terms, the plan is an attempt to help those who deserve assistance. Faced with a growing crisis, President Obama realizes it would be impossible to assist everyone who is caught in the nightmare of foreclosure. So, instead of a wide ranging effort to assist everyone, he has decided to focus on helping “deserving homeowners” stop foreclosure.
How do you know if you fall in the category of a “deserving homeowner”?
Two main factors will be considered. First, you have been responsible about maintaining a good payment history. Second, you are paying about 35% of your income toward mortgage payments. If you fit these conditions, you may be eligible for help. Help will be in the form of refinancing mortgage payments.
He hopes to get lenders on board by offering them incentives if they help homeowners who are on the verge of foreclosure.
Since subprime loans are responsible for much of the foreclosure problem, the planned incentives will have the government pay at least part of the difference between old and new monthly mortgage payments. To take part in the incentive program, lenders have to agree to set up payments so they don’t exceed 31% of the borrower’s income.
This alone is expected to help as many as 4 million homeowners.
Speculators or people who let their homes slip into foreclosure without attempting to maintain payments will not benefit from this bail-out package.
Those who have already lost their homes to foreclosure will probably not be eligible for this rescue package. Nor will it help you if you need to refinance your home and it is worth significantly less than what you owe on it.
If you think you may be eligible for assistance under President Obama’s plan, you may want to get in touch with your lender. If they will be participating in the incentive program, you just may be able to stop foreclosure on your home.
If time is running out for you, go to http://getforeclosurefacts.com/ to find out how to stop foreclosure fast.
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