Digital News Report – Over the past several years declining home prices and high unemployment have caused more homeowners to file for bankruptcy or enter foreclosure. The Obama loan modification program was designed to stem the tide of foreclosures.
A survey last week by the American Association of Realtors found that home prices have declined, existing home sales have slowed and there is now a 12-month inventory of homes on the market.
The U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development (HUD) have created a loan modification program to reduce the number of foreclosures. The program is free to the homeowner. The government has begun post success stories on their Making Home Affordable website.
Homeowners need to be in financial trouble to qualify for the program. A new expanded version is helping homeowners who have lost their job and are now unemployed.
Declining home prices have made it nearly impossible for homeowners to advantage of new low interest rates. Fannie Mae and Freddie Mac, banks and other lenders are taking advantage of the program too. No one wants to see home prices decline further.
There is a new second lien modification (2MP), a hardest hit fund and other refinancing programs. There are (free) government approved councilors available to aid homeowners.
By: Tina Brown