Digital News Report – The government debt relief program got a shot in the arm last week when the Obama Administration modified the Making Home Affordable Program.
Grants are being offered in the form of payments to companies to help Americans get out of debt. The Obama Administration says the program counseling is free. The goal is to help Americans pay their mortgages during this time of high unemployment.
The relief programs will help people who are overextended on their credit cards, owe too much money or are unable to make ends meet. The companies will work with various lending institutions including Well’s Fargo and JPMorgan Chase.
Debt settlement companies are springing up to help council those in debt. They will work with lenders to either modify the loan or settle the debt using a short sale.
There was a 32 percent increase in bankruptcy filings between 2008 and 2009, according to the American Bankruptcy Institute.
The program has saved thousands of homes. McCray-Hodges, 67, of Santa Cruz was able to save her home using a loan modification program, according to a recent report in the Sentinel.
By: Tina Brown