Digital News Report – Homeowners around the country have been hit hard by the recession and many are finding hard to find a refinance loan. The Obama loan modification program may help.
Some states have been hit harder than others and are receiving more assistance. Whether you are in one of these states or not, you may be able to qualify for the loan modification program. The good news is that it is free to the homeowner.
The banks don’t want to take back the home. In some states the number of days a homeowner can stay in their home has skyrocketed to over one year. Because of the backlog of cases, it may take over 400 days to evict a delinquent home owner.
Many of the subprime loans have adjusted higher leaving the borrower in a bind. Many were expecting to refinance before the adjustment. Rather than seek personal or other lending loans to keep their heads above water, homeowners can see if they qualify for Home Affordable Modification Program (HAMP).
The goal is to modify the existing mortgage into a low interest loan. Make sure you are working with a government-approved consultant on the refinance loan. “Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan,” the Obama Administration warns.
Arizona, California, Florida, Michigan, and Nevada are the hardest hit states. Many of the homeowners affected by this economic downturn live in these states.
By: Tina Brown