President Obama and his team have been working aggressively to address the recent economic turmoil that the whole nation is embroiled in. One of the ways with which his administration is dealing with the crisis is by addressing the foreclosure troubles that many homeowners in the country are facing. Early this year, President Obama revealed his Homeowner Affordability and Stability Plan. This is part of his scheme to bring some semblance of order to the housing market.
The Homeowner Affordability and Stability Plan will not only help those who are facing foreclosures. It will also give aid even to those who are current in their payments.
How the Homeowner Affordability and Stability Plan will Help Those Facing Foreclosures:
The Homeowner Affordability and Stability Plan will help those who are at risk of foreclosure by giving lenders financial incentives when they change first mortgages. Those who are behind in their payments are not the only people who will qualify for the Homeowner Affordability and Stability Plan. Even those who are current in their payment but struggling will be eligible for aid.
The following are the requirements for eligibility:
1) The house is your primary residence,
2) Your mortgage payment is greater than 31% of your monthly gross income; and
3) Your loan does not exceed current Fannie Mae and Freddie Mac loan limits.
How the Homeowner Affordability and Stability Plan will Help Those who are Current on their Mortgage:
If you are current on your payments but you are seeking to refinance, the Homeowner Affordability and Stability Plan will help you. The plan will enable you to avail of refinancing. Interest rates of these refinance offers are fixed under a 15 or 30 year term. You will be eligible for refinance even if you owe more than the value of your property, as long as the first mortgage will not exceed 105% of the current market value of the property. For more eligibility details, seeking information from those who implement the program is advised.
