Cape Coral Florida's Real Estate Guide

President Obama has a plan to help 7-9 million families to refinance or restructure their loans called the Homeowner Stability Initiative. President Obama wants to make a point that this plan is to help responsible families, not those who have made poor judgements and investments. This plan is not for investors; it is only for those who live in their homes and are worried about keeping their home.

Even if you are not behind on your mortgage yet, help is available to you through this plan. If you have been affected by declining home values to where your house is now worth less than the remainder owed on your mortgage, refinancing is now available. Its aim is to restore the balance between the homes value and the amount owed on the mortgage so that keeping your home is affordable to you.

If you are behind on your mortgage due to circumstances like job loss, illness in your family, or a dramatic increase in your payments due to rising interest rates, there is now a $75 billion dollar plan in place to make reduce your mortgage payments to 31% of your annual income. The lenders will need to restructure loans for these homeowners and it will be up to them to decide who will receive aid. Why? It is not in the lender's best interests to restructure a loan for someone who will likely default in the future. They will need to determine whether this is a person who simply bought more house than they could afford or someone who made responsible decisions but has been suffering financially nonetheless. It may end up that it is in the lender's best interest to foreclose on the home while the home's value is higher and that is what will end up happening under those circumstances.

Homeowners are expected to feel relief from this plan almost immediately after it goes into full effect on March 4th. If you are having trouble paying your mortgage, contact your lender now and see what can be done to help you save your credit and your home.