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