Get Paid $1,000 Per Loan Modification! - Obama's $75 Billion Stimulus Can Save Your Home

US economy is facing a dip since past few years and it has laid a major impact on the home owners in the country. One out of every ten home owners is now facing a foreclosure and the rest 9 are suspecting the same very soon. Obama government has brought in a $75 billion package for the stressed home owners. This scheme is known as the Homeowner Affordability & Stability Plan. It was announced on February 18, 2009 and its execution date is March 4, 2009. The execution is being headed by the US Treasury Dept. The plan is expected to help over 5 million home owners.

Here is Obama's $75bn stimulus plan to save home from foreclosure

· Earlier even loan modification did not reduce the amount payable in the monthly payments. As a result every soon the home owner lands up in a default again. The new plan clearly states that when ever the mortgages are restructured, the home payments con not exceed 31% of the of the borrower's monthly income.

· Further the culmination of all the debt payments of the person can not be more than 55% of the pre tax income. Here all sorts of debts would be included like car loan, credit card payments, etc.

· Next benefit is that loan modification would now be allowed even if you have not made a default on any payments. For instance, the borrowers who were earlier bound to pay an amount more than the current value of their property can now apply for a loan modification. Fort this, the loan amount must be based on a value that is 105% higher than the current market value of the property. Earlier the law stated that the borrowers who held 20% equity in their homes could go in for a refinance.

· For every loan modification done, the mortgage company would earn $ 1000.

· The Obama plan strictly dictates that in case you are paying for the professional loan negotiation help to save you home, you should not be doing so. The US Dept. of Housing & Urban Development (HUD) has appointed innumerable counselors to do this job free of cost for the home owners in need. These are non profit firms.

Some of these are Neighbor Works America, Acorn, the Neighborhood Assistance Corporation of America, Catholic Charities, the Urban League, etc. They are all paid by the federal government in order to run the programs for the help of home owners in trouble. Actually these non profit organizations sign a contract with hundreds of other counseling services in the country to negotiate the new loan terms and to counsel the borrowers on the over all household budgeting.

· However, some banks are coming forward to help the home owners to get out of the fix. For instance, the Citigroup announced recently that it would lower the payments to $500 per month for 3 months for the borrowers who have lost the homes. The banks are expected to follow up soon.

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure. To know more about Latest Loan Modification Programs and to check if you qualify