Digital News Report – The Obama loan modification program was designed to help homeowners who are having trouble meeting their financial obligations. Since home prices have drastically declined, many homeowners have walked away from their homes leaving the lender stuck with real estate owned (REO).
The Home Affordable Modification Program (HAMP) is an effort to slow the decline of home values, save homes from foreclosure and help lenders work out affordable terms with homeowners. The government home loan modification program has now been expanded to help homeowners who have lost their jobs.
The unemployment rate has reached 9.6 percent after climbing most of the year. This combined with slow private sector growth, has hit inner cities and some states more than others.
The Making Home Affordable Program is free to the homeowner. Both the bank and homeowner can benefit from the program.
Here is a list of new plans to deal with the current crisis:
1) Mortgage services to assist the unemployed. This plan aids homeowners who are underwater and unemployed.
2) The Second Lien Modification (2MP) program helps Americans modify their second mortgage loan.
3) The Home Affordable Refinance Program will help homeowners take advantage of the new low interest rates.
4) Short sale programs will help homeowners who can no longer afford to stay in their home. Rather than going through a foreclosure, homeowners may go through a short sale or deed-in-lieu of foreclosure. This could help prevent negative ramifications on your credit history (credit score) and limit liability.
Government approved councilors can help in all of these situations.
By: Tina Brown