How President Obama's Mortgage Plan affects Homeowners in the Bay Area, by Clyde Brown, Real Estate Expert in the East Bay

In order to reduce the number of foreclosures, which has been on the rise recently, Pres. Obama introduced a plan to make homes more affordable. It offers the Bay Area homeowners the chance to either modify their home loan or refinance it. They will then be able to get a fixed-rate mortgage at a 2% interest rate. Here are a few major points from the bill that will affect homeowners the most.

#1 - It is no longer necessary to have at least 20% equity built up in your East Bay Area home, or the equivalent in cash to be approved for a modification of your home loan. If you have been rejected for refinancing or modification you may now find that you can get an approval.

#2 - This plan permits any Bay Area homeowners that currently owe more than the value of their home on their loan, the opportunity to refinance their mortgage or modify it.

#3 - Cash incentives are being offered to banks and lending institutions that are willing to help out homeowners in the East Bay that have been caught in the housing market crisis. The approval rate for loans is much higher now, since this plan has been set in place and these incentives have been introduced.

#4 - The owner of the East Bay Area home must live in it in order to qualify. Owners of vacation homes and rental housing in the Bay Area cannot use this plan unless they reside in them permanently. This is unfortunate because in most cases, when a rental foreclosure takes place the occupants are evicted and must find new housing.

Many people around the Bay Area are taking this opportunity to modify and refinance their existing loan in order to save their Bay Area home, or merely as a way to get their finances back in order.

If you are considering buying or selling property, planning to relocate, looking for East Bay Area homes for sale, or looking for any other information about real estate in the East Bay, or the surrounding areas, please visit the most complete website dedicated to everything real estate related www.ClydeBrownHomes.com.

If you or someone you know are in need of a competent and experienced Bay Area Realtor, or have real estate or mortgage related questions, please feel free to contact me I will be more than glad to answer your questions. Call me at 800-839-0665 or email me at Clyde@ClydeBrownHomes.com. For all your East Bay cities needs including Fremont, Newark, Union City, Hayward, Oakland, Santa Clara, Milpitas, Dublin, Livermore, Pleasanton, and San Ramon. Clyde Brown Legacy Real Estate & Associates.