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During this time of economic recession there are is huge increase in number of foreclosures across the country. To re-stabilize this market condition federal government introduced Obama stimulus package. The main intension of this program is to help the struggling home owners to repay their mortgages with new revised lower rate of interest with a payment plan which fits well within their monthly budget. The Obama stimulus program has 2 major components.
1. Refinance your current mortgage loan
In this program initiated by federal government two most well established and dominant home refinance mortgage loan lending institution Fannie Mae and Freddie Mac would refinance the mortgage loan of financially struggling homeowners who will owe much more mortgage than the actual value of their home. But to get qualify for this program there is a condition that your mortgage have to be guaranteed by Fannie Mae or Freddie Mac. There are certain qualifying rules of the program which your financial condition should meet with in order to avail the benefits of stimulus plan.
In mortgage refinance your current mortgage loan is refinanced with a new one at much lower rate of interest and with revised monthly payment plan which fits well within your monthly budget.
2. Modify your current mortgage loan
Under loan modification program your current mortgage loan is modified with lenient terms and condition and at revised lower monthly payment and increasing the loan term. With these program homeowners facing financial hardships get save their homes from foreclosures. There are some qualifying criteria under this program which you have to meet with in order to get approval for the program. With this program the interest rate would be reduced to as low as 2%, tenure of loan will be increased to lower the monthly installments and even borrower will get their late fees waive off.
There are many lenders offering you refinance mortgage help. The lenders are paid incentives by government in offering mortgage refinance and modification loans. Hence there is competition among lender to get the business and borrowers can take advantage of this situation. Check the credibility of lender before availing the refinance loan. There are many fraud lenders in market who can take advantage of your credit situation and can make your condition worst.
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