Obama Refinance Plan and Debt Ratios at 31% , What it Means!

Debt Ratios above 31% and you qualify!

Great what does that mean?

Does this sound familiar, " My House is Upside Down and my Debt Ratio is above 31% now what do I do?"

You are not alone. Even I get confused at what it all 'really' means!

Here is a little bit of information that will come in handy if you plan on using this latest $75 Billion Rescue Plan by Obama's administration to your advantage:

1. There is now clear cut roll out of 'exactly' what Obama's plan is at the moment.
2. Obama did make it clear that homeowners who are Upside Down on their mortgage be offered a decrease in payment but there is no clear method to doing this as of now.
3. It's clear that Fannie Mae and Freddie Mac will be subsidized moving forward which will help banks and lenders keep loaning money!

LOT's and LOT's of questions to what will happen next!

Here is my opinion on what you could be looking at:
1. Right now you will call your lender and ask for help and more than likely they will say NO!
2. It will take some time before any of this hits the market but when it does you will want to pay attention to your mail because you might just miss your opportunity to lower your payment.
3. Recently some lenders have been looking at 'troubled loans' and scheduling them for review. This may happen again so paying attention to lender communications is the key.
4. Reviewing your Mortgage Debt-to-income ratio on your own will be VERY beneficial. Find out more information on the subject in an email I wrote at Mortgage Debt Ratios.
5. It will more likely than not come down to a loan modification instead of a straight out refinance but that will be determined moving forward.

In the end, your lender doesn't want to foreclose on you and if you provide them with the requested information and know your own calculations ahead of time you WILL get your desired results.

IF YOU FEEL LOST, listen to my latest conference calls on Streamline Fannie Mae and Freddie Mac Loan Modification and Short Refinancing, Understanding Your Options!

-It's a Free Report-

Obama's $75 Bail out, Your Mortgage and Handling your Lenders and Banks

Well it's official!

We are getting additional aid from the government to stem off additional foreclosures.

Mortgage Debt-to-income ratio is now more important than ever and one of the main points listed below. They want 31% to be the new level which is VERY aggressive.

If you need to know how to calculate your debt-to-income ratio please follow this link to

MORTGAGE DEBT-TO-INCOME RATIO

NEWLY ADDED: I found a great article talking in more details about President Obama's Homeowner's Affordability Plan.

This will go into detail on the calculations but the new percentage they are looking for is 31%. This matches the percentage needed to qualify for the Hope for Homeowners but the structure will be different in the approach.

"Housing Secretary Shaun Donovan stressed that homeowners don't need to be delinquent in order to get help." - This comment has to be the best news for many homeowners out there who need the help but also want to keep their great credit!

Let me help you through the process!

-It's a Free Report-

President Barack Obama marshaled $75 billion on Wednesday to tackle the foreclosure crisis in an effort to prevent up to 9 million Americans from losing their homes.

In tandem, the Treasury Department said it would double the size of its lifeline to Fannie Mae and Freddie Mac. The government, which seized the mortgage finance companies last fall, said it would absorb up to $200 billion in losses at each company.

The plan is more ambitious than initially expected — and more expensive. It aims to aid borrowers who owe more on their mortgages than their homes are currently worth, and borrowers who are on the verge of foreclosure.

The initiative is designed to help up to 5 million borrowers refinance — if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac. It also provides incentive payments to mortgage lenders in an effort to convince them to help up to 4 million borrowers on the verge of foreclosure.

"All of us are paying a price for this home mortgage crisis," Obama said in remarks prepared for delivery at a ceremony announcing the program at a Phoenix area high school.

The housing industry has been devastated by the nation's recession. Construction of new homes and applications for future projects both plunged to record lows in January as all parts of the country showed big declines in building activity. Analysts hope that a boost from government programs, including the efforts to stem foreclosures, will help stop the slide.

Headlining Obama's plan was a $75 billion Homeowner Stability Initiative, which would provide a set of incentives to lenders to cut monthly mortgage payments to sustainable levels. It defines this at no more than 31 percent of a homeowners income. Funding would come from the $700 billion financial industry bailout passed by Congress last fall.

Another key component: a new program aimed at helping homeowners said to be "under water" — with dwellings whose value have sunk below the principal still owing on their mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 to 5 million families do just that.

Obama said this change would come at "roughly zero" cost to taxpayers.

Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody's Economy.com

Announcing his plan in a state hard hit by the housing crunch, Obama said that stemming the tide of foreclosures is key to turning around the recession-bound economy.

"In the end, all of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to deepen," he said, according to the advance text.

The plan also seeks to bolster confidence in Fannie Mae and Freddie Mac, the mortgage giants effectively taken over by the government last year. The White House said the Treasury will be able to increase its funding commitment to the two by using money Congress set aside last year, and will continue purchasing mortgage-backed securities from them.

The Treasury said the increased support for Fannie Mae and Freddie Mac didn't reflect projected losses at the two companies, which were seized by government regulators last September. The two companies are currently projected to need a combined government subsidy of about $66 billion, well short of the new promise of up to $400 billion.

But Treasury Secretary Timothy Geithner said in a statement that the support "will provide forward-looking confidence in the mortgage market and enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners."

The biggest players in the mortgage industry already had halted foreclosures pending Obama's announcement.

The president's announcement was coming a day after he signed into law a $787 billion economic stimulus plan he hopes will spark an economic turnaround and create or save 3.5 million jobs.

At the same time, the administration was grappling with the darkening prospects for the U.S. auto industry.

Even as Detroit carmakers submitted restructuring plans to qualify for continued government loans, General Motors Corp. and Chrysler LLC asked for another $14 billion in bailout cash.

Explaining the plan, Treasury Secretary Timothy Geithner told reporters, "''This is necessary policy. It's smart economics. And it's just and fair."

Asked why the cost had jumped to $75 billion, Geithner said, "We think that's necessary to make a program like this work."

Asked about the doubling of the guarantees for Fannie and Freddie, he said: "This is not a judgment about the expected losses ahead. It underscores commitment, and that is very important to help keep mortgage rates low."

Geithner said most not all of the money would come the financial bailout fund.

And he said relief would be almost instantaneous, basically as soon as rules are published March 4. "You'll start to see the effects quite quickly", Geithner said.

FDIC Chairman Sheila Bair said that previous efforts had largely flopped. "We've not attacked the problem at the core," she told reporters. "We are woefully behind the curve."

Added Geithner: "The cost of inaction has been very severe."

Housing Secretary Shaun Donovan stressed that homeowners don't need to be delinquent in order to get help.

___

Alan Zibel reported from Washington; Associated Press Writers Liz Sidoti and Martin Crutsinger also contributed to this report.

Short Refi: Consultation

It's been my goal to help as many homeowners as possible handle their mortgage issues.

During the past two years I have thousand of households with their mortgage problems by directing them in the right direction and help them figure out which course of action is the best for them.

Recently, I have been working One-on-One with people to help them find a solution that fits best with their given scenario.

This has really put a crunch on my time and several more people are contacting me everyday to help them solve their mortgage issues.

I have made a decision!

I want people who really need the help and I want you to be the first people in line!

See as of now I have been answering emails one at a time as fast as I can but ultimately I am failing to keep up with everyone because there are so many questions.

I have decided to let you CUT to the front of the line.

You can now hire me for a consultation via email and over the phone!

Donate $50 to my site via Paypal and we will exchange emails and a phone call discussing your situation specifically and how to best approach your mortgage!

(Paypal is listed on the Right hand side near the bottom of the page)

• We will discuss your options, Refinances, Loan Modification or Short Sale
• You will find out how to accomplish each method
• You will know how to lower your mortgage payments and get back on track
  
• I will give you an exact step-by-step plan for each method
• You will know the exact steps it will take to get back on your feet

If you have read anything else I have written you know I want to help everyone I can.

Your consultation will give you the light at the end of the tunnel you have been looking for.

Spend the $50 and you will get everything I have to give to find you the best answer possible. If for any reason you feel the time we spent together wasn't worth the $50 I will refund it to you no questions asked.

I hope I can help you and your family as well.

Talk with you soon.
Brent Lane

Brentlane.wordpress.com