The basics of President Obama's $75 Billion Mortgage Bailout to Reduce Foreclosures plan are below:

The overall guiding principles:

1) Help homeowners who can make payments but are hurting with high interest rates who would not otherwise be able to refinance

2) Homeowners who are at risk of foreclosure can work lenders who will alter the terms of the loans while receiving incentives from the government

3) To shore up Fannie Mae and Freddie Mac with $200 Billion in additional financing

Basic details:

1) Distressed homeowners will work with their lending institutions who will reduce the borrower payments to at least 38% of gross income. If the lenders choose to go lower (until 31%) the government will provide monetary incentives.

There are actually three options available:

a) reduce principle
b) reduce interest rate
c) extend payment period.

2) For the homeowner not in distressed with high interest rates and owing more in loans than what the house is worth can refinance into a lower interest rate; thereby, reducing payments.

Keep in mind this is just a brief overview of President Obama's $75 Billion Mortgage Bailout to Reduce Foreclosures plan.

When the details are released on March 4th, I will write another post providing more information.

UPDATE: Visit the U.S. Housing Affordability and Mortgage Relief Rescue Plan to see if you qualify to keep your home.

Until next time.

Shawn Nelson, MSA
Co-Founder of WhatBusinessToDo.com
Make Money at Home Online
(347) 284-6958