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Digital News Report – The goal of the government loan modification program was to slow the decline in home prices and stop foreclosures. The program is working, according to a recent release from the Obama Administration.
There are several aspects to the program that help homeowners at different stages in the process. The program is free and paid for by the federal government. The counselors are free and there are incentives for everyone involved to save the home from foreclosure.
The Home Affordable Modification Program (HAMP) was designed to help homeowners who are having trouble making their monthly payments. Since the program’s inception there have been new segments added.
Now that rates are at historic lows, the program was expanded to help American acquire refinancing. This is an important aspect to the program because many homeowners purchased their home using adjustable rate mortgages. These mortgages have now adjusted upward.
In some instances there is a second lien encumbering the property. The Second Lien Modification Program (2MP) offers homeowners a method of modifying their second mortgages. After the second is modified the homeowner can refinance their first.
If everything else fails there is a final option before foreclosure. There is a Home Affordable Foreclosure Alternatives Program to help in the transition. Homeowners can get the government help them with a short sale or deed-in-lieu of foreclosure.
In the last quarter there were one million more Americans helped. “Since April 2009, record low interest rates have helped more than 8.3 million homeowners to refinance”, the statement added.
By Tina Brown
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