The housing market is in a huge crisis these days and homeowners everywhere are feeling the pain. Millions of homeowners are struggling to avoid foreclosure and stay afloat. With the highest rate of foreclosure ever seen in American history many have begun to lose all hope of keeping their homes. However it is possible to sidestep the feared foreclosure with the new plan that President Obama has introduced, “Home Affordability Plan”.

This new housing stimulus plan has been introduced to help those homeowners that can not continue paying their mortgage and have been threaten with foreclosure and also homeowners that are now paying more for their home than it is actually worth. Homeowners that are not struggling to pay their homes but the value of their homes has dropped will also be eligible for the program.

There are a few requirements that must be met prior to being accepted for the plan. First of all you will be required to create a financial hardship letter explaining the reasoning for your current financial difficulties. the hardship letter will have to include any and all reasons for the difficulties that you are having and can range anywhere from unexpected medical emergency, death in the family, loss of income, decrease in income etc,. Be aware the lenders and banks will look into the reasons you provide them and if you are caught lying you will be automatically denied and disqualified.

Another requirement for the stimulus plan is that the original loan cannot exceed $729,000 for a single family home.

Mortgage refinancing and modification can be the answer you have been looking for. Do some research into a potential lender or bank to check if you qualify and get different quotes from different lenders to get the best possible option for your situation.