New Mortgage Plan Announced to Give Boost to Home Loan Modifications

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) February 20, 2009 -- California, USA—February 20th 2009—The Obama Administration has taken the foreclosure crisis head on by announcing a much awaited mortgage plan to stem one of the primary reasons for the economic downturn. The new strategy aims to help literally millions of homeowners across the United States falling under the negative equity trap.

A total of $75 billion was set aside to assist mortgage companies and more importantly the homeowners to help them keep their homes. In fact, the Obama administration also announced that financial support to mortgage companies Fannie Mae and Freddie Mac would double to $200 billion each.

The keyword used by the new mortgage plan was “responsible homeowners.” Those falling under that category would be helped to make their mortgages more affordable. Those who cannot afford to pay their mortgage but have properties whose total value has been plummeting will also be able to seek help from the new mortgage stimulus package.

Bridget Toomey of the California based Loan Modification Foundation, who has been following the new announcements closely said on Thursday “The new mortgage package was long awaited and we are absolutely thrilled now that it is finally here. Although the actual details of the plan won’t be released until March 4th, this is a step in the right direction to spur lenders to help thousands of homeowners qualify for a home loan modification under the new plan.”

Organizations like the Loan Modification Foundation has been working overtime helping homeowners getting their home loans modified and to help avoid late payments or even foreclosure. They have been pushing for a new plan for a long time especially since most homeowners would be able to save their homes if they got a little assistance from their mortgage lenders. The new measures announced would do exactly that – compel the mortgage lenders to start approving home loan modification applications and boost the real estate sector in general.

The package has been given the thumbs up by almost everyone connected with the real estate sector and especially the ones affected by the mortgage crisis. Foreclosures has been on the forefront of all discussions on how to get the economy back in shape and the mortgage plan has been welcomed as a starting point in turning around the mortgage and real estate industry.

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