Obama Mortgage Rescue Plan 2011: Obama Housing Stimulus Package and Home Owner Rescue Plan

Let’s face it; you may be one of the millions of Americans who may lose their home to foreclosure. Even though this is a harsh reality, the government has made provision and now this program, funded by stimulus money has been called the Obama mortgage relief plan.

And that is just what it does. This plan has also been names the “Obama Mortgage Plan” by many people who have been helped. This is because the current administration understands the problem and has earmarked about $75 billion to help American families who want get out of the recession.

The modification plan states that a servicer is to reduce the interest rate so that the homeowner’s monthly obligation does not surpass 38% of the borrower’s pre-tax income. The government then kicks in money to reduce the payments down to 31% of income. Also, as an incentive, lenders receive $1,000 for each modification and continue to receive $1,000 per year for the next three years as long as the borrower stays current on the loan. And the borrower gets up to $1,000 a year for five years as long as they stay up-to-date on their loan. This latter $1,000 per year goes to reduce the principal on the loan and thus the amount that is owed.

This program will not only keep you in your home, but will also include an additional $1,000.00 reduction in mortgage payments that may extend into the next five years. The Obama mortgage refinance plan also allows home owners to make mortgage payments that equal about 38% of their current income. For many Americans who have been struggling to make ends meet now can be put into a situation that can keep you secure. The result is that families don’t have to make choices about whether they will put food on the table or a roof over their heads.

Private and public lenders are also on board with the program. They are now offering free information that will prevent a foreclosure if possible with the ‘Obama help to keep you in your home’ plan. Life is not meant to be spent worrying if you are going to be able to afford your payments next month. Isn’t it time you utilized your rights as a homeowner?

Learn more about Obama Mortgage Relief Plan Qualifications.

Tags: default, Foreclosure, Home Loan, home loans, Mortgage, Obama, obama mortgage rescue plan 2011, Refinance