Mortgage Relief in Sight

Date February 18, 2009

I read today on cnnmoney.com that President Obama is unveiling a $75 billion multi-pronged plan today that seeks to help up to 9 million borrowers suffering from falling home prices and unaffordable monthly payments.

The long-awaited foreclosure fix marks a sharp departure from the Bush administration, which relied mainly on having servicers voluntarily modify troubled mortgages.

Obama, meanwhile, will make it easier for homeowners to afford their monthly payments either by refinancing the mortgages or having their loans modified. The president is vastly broadening the scope of the government rescue by focusing on homeowners who are still current in their payments but at risk of default. And he puts billions of federal funds into enticing servicers to modify the loans of those who’ve already stopped paying.


The article goes on to highlight other key points to Obama’s plan. If passed, the plan will compensate servicers for each loan modified, incenting them to help at-risk borrowers continue and stay current on their mortgage payments.

If you feel you’re at risk of losing your home, call your loan servicer and ask about your options. You may be able to refinance to save possibly hundreds of dollars each month. Or, you may be eligible for a loan modification. Find out what your options are before your loan goes into default. It will show the lender that you are serious about keeping your home and making your payments and they may be more willing to work with you.

Your home is your haven. Take advantage of what is available to you to help you keep it, and live happily ever after.

Questions or Comments? E-mail me at blogger@matadorsmoneymatters.com.

Category Posted in Loans

Comments are closed.