Many of homeowners have questions regarding the President  Barack Obama’s Housing Plan.  A lot of Americans are in various stages of foreclosure and the help can not come soon enough.   So who is eligible?

The program is expected to help those who are in danger of not making their monthly payments.  The applicants do not have to be behind, but may be asked to demonstrate that they may be short on making their monthly payments.  The program’s eligibility is determined by whether the monthly mortgage payment is above 31% of applicant’s gross income.  Jumbo loans (the loans over $417,000) are not eligible and neither are second mortgages.

The lenders and loan servicers are encouraged to participate in the program by receiving subsidies and various incentives from the government but are not otherwise required to participate.  Servicers receive $1000 per loan modification and will continue receiving $1000 each year for three years if the borrower continues being current on the loan.

Watch an interview with Early Show’s financial adviser Ray Martin, who answers some of the questions.

Housing Plan HASP

In an effort to keep 9 million people from loosing their homes President Barack Obama unveiled his $75 billion mortgage relief plan on Wednesday, February 18th.   The plan will reportedly help homeowners afford their monthly payments by either refinancing their mortgages or having their loans modified.  The president is broadening the government resque to include those who are current on their monthly payments but are at risk of being default.  Obama’s plan met a sharp opposition from the Republican party.   Obama responded to critics: The plan is not meant to help irresponsible borrowers.

“It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans. It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell,” Obama said Wednesday. “It will not reward folks who bought homes they knew from the beginning they would never be able to afford.”