Because of the growing problem with the housing market and homeowners who have been struggling to keep from foreclosure or bankruptcy, President Obama's administration introduced the $75 Billion Stimulus Package to provide homeowners with a solution. Under the Plan, homeowners can renegotiate the terms of their mortgages, while the lenders receive government incentives of $1,000 for every completed modified loan. This enables both the homeowners and lenders to avoid incurring losses that would have otherwise further hurt the housing market and overall economy.

Is the Stimulus right for you?

If you qualify with the guidelines below, you can submit your application and begin the process for approval.

* Your new monthly payments will include your taxes, HOA fees, and insurance, and cannot be over 31% of your gross monthly income. Any debts you have must not be over 55% of your gross income.

* You may be eligible to refinance your home if the balance of what you owe is greater than 105% of what your home's current market price is. You no longer have to have 20% equity before refinancing.

* The government has paid for the Housing and Urban Development department (HUD) to provide you with free financial services in determining what program might be best for you, and they can even represent you should you need help approaching your lender. You can find information with the Urban League, Acorn, Neighbor Works America, or the Neighborhood Assistance Corporation of America, among others.

* The process for renegotiating loans owned by Fannie Mae or Freddie Mac are separate from the Stimulus. You can find out the details of their options by going to their websites or contacting them for more information.

* Homeowners with debts of $417,000 or above do not qualify for assistance under the Stimulus.

About the Author:

For tips and facts about how you can benefit from Obama's Home Stimulus Plan - or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net

Author: Joe Emery