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Digital News Report – The government loan modification program is helping save homeowners from foreclosure while helping stabilize the housing market, according to a recent HUD report.
After the collapse of the housing market, many Americans found themselves owing more money on their homes than they were worth. These underwater homeowners either walked away from their mortgage obligations or went through the foreclosure proceedings. This pushed home prices down further.
The new Making Home Affordable program was set up to help slow this downward trend. The program, which is free to homeowners, has helped more than 37,000 homeowners in July alone.
The government has various programs including:
1) Home refinancing is out of reach because of declining home prices. The Home Refinancing Program is designed to help homeowners take advantage of historically low interest rates.
2) Home Affordable Modifications Program (HAMP) was set up to help struggling homeowners who are having trouble making payments.
3) The Second Lien Modification Program (2MP) is designed to help Americans who are having trouble paying their second.
4) The Home Affordable Foreclosure Alternative Program can help homeowners avoid the “negative effects” of foreclosure.
5) A Hardest Hit Fund has been set up for Americans in certain states or areas of the country.
There is no one-size-fits-all approach. Government approved councilors can help homeowners determine which program is right for them.
By: Tina Brown