Digital News Report – Homeowners who find themselves in financial trouble can turn to the government sponsored loan modification program set up by the Obama Administration (Home Affordable Modification Program or HAMP).
The loan modification program is free to the homeowner. The goal is to prevent foreclosure and “stabilize” the housing market. Homeowners need to be in financial trouble to qualify for the program and owe more than their house is worth.
Since the collapse of the housing bubble millions of homeowners have found themselves in that situation and underwater (ie owing more than the house is worth). It is estimated that between 7 and 9 million Americans may be eligible for the Making Home Affordable (HMA) program.
Besides the modification program, President Obama has begun another initiative. The new plan set aside hundreds of millions of dollars to the “hardest hit” states where unemployment is high.
Just this month the Obama administration added five more states to the hardest hit fund. State Housing Finance Agencies are the ones charged with distribution of the money. The goal is to stabilize the housing market. If you believe you qualify for this program, contact your State Housing Finance Agency to find out.
By: Tina Brown