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Digital News Report – Changes to the Making Home Affordable program may work, according to the Obama Administration. The program, which was created last year, got off to a slow start but is now picking up steam.
HAMP (Home Affordable Modification Program) was set up to assist homeowners who are underwater and owe more than their house is worth. The Obama administration also wants to help “responsible” homeowners who are currently unemployed.
The money, which was originally earmarked by the Bush Administration to bailout Wall Street, will be spent to “promote stability” for the housing market.
Some homeowners may not qualify. The government has set up servicers to help facilitate the process. If you want to find out if you qualify, contact an approved servicer. The service and modification is free.
There are incentives for both you and the bank to work out a modification to avoid foreclosure. Phyllis Caldwell, Chief Homeownership Preservation Officer, estimates that the program has saved than $7 billion in the past year and Americans are saving an average of $500 per month.
By: Tina Brown