Digital News Report – The housing market around the nation has been hit hard by decreasing home values. To make matters worst, the economy has suffered as well because many have either saw their income decrease or have lost their jobs. Because of the housing crisis and the steep increase of housing foreclosures home prices spiraled to even lower values. The government loan modification program was started in an attempt to slow down and stop the number of homeowners from losing their homes to foreclosure.
The Home Affordable Modification Program (HAMP) was created by President Obama and Congress to help struggling homeowners refinance their existing mortgages into lower payments. By doing this homeowners can get lower interest rates, get earned principal forgiveness, and extended terms. All these strategies can be used to help homeowners afford their mortgage payments.
Home Loan Modification Requirements
No Cost to Participate in the Modification Program
The government home loan modification program is free and there are also HUD approved counselors that are free to consult. The loan servicers are “required” to work with the borrower unless it was prohibited in the original loan documentation. Once you start applying for the home loan modification, the lender will set up a trial modification. You will more than likely also need to complete paperwork during this time frame as well. Once you have met all the paperwork requirements and have made your payments on time, your loan will become a permanent modification.
By: Victoria Brown