Obama Mortgage Bailout Program for American Citizens

Did you know that the present administration has created a program to help American citizens in need of mortgage help? This Obama bailout program was created especially for those low income families who are troubled by impending foreclosure because of the economic problem that came about once the loan mortgage bubble popped. The government realizes the need to step in and lend a hand to these people. There are people who, aside from dealing with their mortgage problems, are also struggling with the loss of income and the increase in daily expenses that both arose from the economic crisis. The situation seems simply impossible for these struggling families. They are the ones who are entitled for some of the Obama bailout funds.

Are you one of these people? Have you been struggling to keep your family from being homeless while dealing with an economy that does not provide job stability? If so, then read on. The following are the current developments in the Obama bailout plan.

Everybody who borrowed money for their mortgage but has been failing to meet deadlines for their monthly payments are considered as qualifiers for the mortgage bailout. This bailout entails a cutback on the original interest rates of these loans. Perhaps one of the biggest helps that the plan will offer struggling home owners is the extension of the terms of payment for ten or twenty more years. Finally, the most obvious help this bailout will give is the lowering of the principal amount of the loan.

Here are some of the other details of this Obama bailout plan:

- You don’t have to be a nonpayer, but you must be a primary proprietor. If you are not the primary proprietor, then you are automatically not qualified for any loan modifications.
- The plan enables you to freeze your rate if the mortgage rate is set to increase.
- The lowering of your rates will be given to you for the first five years since the bailout approval. After that, the rates will be normalized in accordance to the market rate.
- You can qualify for the bailout if your monthly mortgage is more than thirty eight percent of your salary. Once you get accepted into the bailout, the bank will adjust the loan as appropriate to your income. It would then be insured that your monthly payments will not be more than thirty-one percent of your salary (gross not net).