The Obama and his administration recently exposed their home affordability plan as a way to help at least 10% of homeowners to avoid foreclosure. This can also help them to easily get refinance even though the mortgage debt is more than what your home actually worth.

President Obama also stated that $75 billion will be allocated for housing and mortgage problems out of the $787 billion economic and financial-bailout stimulus plan just two weeks after he became the president.

President Obama and his team laid out the housing affordability plan and implement it properly to avoid being misinterpreted for their intention to help greedy homeowners to take advantage of the housing peak growth times.

This plan is prepared to assist homeowners who have remaining current of more than 12 months mortgage payments. There is refinance mortgage options available for those who are eligible. This stimulus plan is estimated to benefit more than 9 million current mortgage holders.

There are two components involved:

Mortgage lenders are offered with incentives by the local government to loosen their financing requirements for homeowners with financial problems.

Government backed mortgage lenders such as Freddie Mac and Fannie Mae are encouraged to approve home refinancing for millions of homeowners who owe more than what their home actually worth.