Digital News Report – The Obama loan modification program is designed to help struggling homeowners keep their home. The Making Home Affordable program also helps banks before their customers enter into foreclosure.
Last week the government held a seminar in Grand Rapids. These seminars are held all around the country and one will be held in San Diego in a couple weeks. Counselors will be standing by to help homeowners determine the best course of action.
Whether or not homeowners attend the seminar, the program is free. The counselors are paid by the government and there are incentives for the bank or lender to work with the homeowners.
There are several aspects to the program. Besides modifying a loan, there are other options available. There is also a special provision to help underwater borrowers in the hardest hit areas of the country.
The program has been expanded to help the unemployed.
There is also an option to help homeowners with their second lien. This will help lenders and borrowers work out a modification on a second lien.
Now that interest rates are at historic lows, the program helps Americans with loans guaranteed by Fannie Mae or Freddie Mac refinance to those lower rates.
If all else fails, there is a provision in the program to help homeowners with short sales and deed-in-lieu of foreclosure sales. This may provide an option to save your credit and help the banks at the same time.
By: Tina Brown