A Bailout For Some Homeowners

It could be considered a bailout for homeowners.

President Obama today endorsed a plan to help bring some foreclosures to a screeching halt.

It can make a home more affordable while putting more money into the homeowner's pockets.

Angie Podoll is in the process of refinancing her home.

She's kept a keen eye on falling interest rates.

"Over the course of the last seven years, I went from a six percent to a five now to a four and a quarter," she said.

Angie's monthly payment won't change much, but she'll save a lot of money over time.

"I shaved eight years off of my loan and interest rates were about a point lower," she said.

Angie is taking advantage of the revamped home affordable refinance program or harp.

The program streamlines the refinancing process, eliminates appraisals and underwriting requirements, while reducing or eliminating fees that prevented many homeowners from refinancing in the past.

John Miles is with CBS Home Real Estate.

He says the program is beneficial to struggling homeowners who have seen falling valuations.

"There's a lot of people that are in the market today that can't refinance because of the valuation or because of the tightened credit score requirements," he said. "If they've lost 10% or 20% of value they could be upside down. This makes the home more affordable so they can make that payment easier, have less chance of it ever going in to foreclosure and put that money back into the economy."

Angie says the program helps keep an iconic concept alive for more people.

"It will keep people in their homes, you know its the whole American Dream, buy a home, stay in a home and it will keep them there. Make it more affordable," she said. "I think any kind of homeowner should be looking at what interest rates are doing. I don't know how long they will stay low so I think it is in their best interests to take advantage of it now."

Analysts warn the changes announced today would likely apply to only a million loans or less.

Nationwide as many as 11-million loans are in trouble

To be eligible your home loan has to be owned by Fannie Mae or Freddie Mac.

And you must be current on your payments.


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