HOW OBAMA’S STIMULUS PLAN WILL HELP HOMEOWNERS

President Barack Obama signed the stimulus package into law imageslast week and readied a new $75 billion foreclosure rescue for legions of Americans who are in danger of losing their homes.

Obama focused on the $787 billion stimulus plan, an ambitious package of federal spending and tax cuts designed to revive the economy and save millions of jobs.

The $75 billion foreclosure rescue will be a big part of recovery to help stem foreclosures — in Arizona, one of the states hardest hit by the mortgage defaults that are at the center of the nation’s economic woes. Obama is expected to detail how the administration plans to prod the mortgage industry to do more in modifying the terms of home loans so borrowers have lower monthly payments.

More than 2.3 million homeowners coast-to-coast faced foreclosure proceedings last year, an 81 percent increase from 2007. Analysts say that number could soar as high as 10 million in the coming years, depending on the severity of the recession.

Below is a list of key elements of the plan outlined by President Obama that aims to aid as many as 9 million households in fending off foreclosures:

·   Allows 4 million–5 million homeowners to refinance via government-sponsored mortgage giants Fannie Mae and Freddie Mac.

·  Establishes $75 billion fund to reduce homeowners’ monthly payments.

·  Develops uniform rules for loan modifications across the mortgage industry.

·  Bolsters Fannie and Freddie by buying more of their shares.

·  Allows Fannie and Freddie to hold $900 billion in mortgage-backed securities — a $50 billion increase.

It is nice to see the president is working to keep the “American Dream” alive.

If you are in fear of foreclosure click on the following link to find helpful information ARE YOU AT RISK OF FORECLOSURE?

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