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Digital News Report – The Obama Administration has developed a plan to help homeowners who are having trouble making their payments or who own homes that are worth less than their loan amount.
The mortgage interest rate has declined drastically over the past year. But low credit scores and declining home prices have made it hard to refinance. There is a solution.
There are several sections to the program:
Home Affordable Modification
The Home Affordable Modification Program (HAMP) will help “struggling” homeowners who are having trouble making their payments. Adjustable rate mortgages may have adjusted upward making it difficult to make payments.
“A Home Affordable Modification will provide them with mortgage payments they can afford,” the government said in a statement.
Home Affordable Refinancing
The Home Affordable Refinancing program is designed for homeowners who have made their payments on-time. The loans need to be held by Fannie Mae or Freddie Mac.
Alternatives
There are other alternatives including second lien modification (2MP) and help for homeowners who have lost their job and are unemployed. There is also money set aside for the hardest hit areas and tier 5 unemployment extensions.
The program is completely free to the homeowner and the lender. There are incentives to the lender to work with the homeowner. The best way to find out if you qualify is to speak to an approved councilor.
On September 28th there will be a “Homeowner Community Event” in Grand Rapids Michigan. These events are held all around the nation.
By: Tina Brown