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Digital News Report – The government Home Affordable Mortgage Program (HAMP) has had 3.52 million modification arrangements started since the beginning of the program according to October’s Housing Scorecard report released by the US Department of Housing and Urban Development (HUD). The Housing Scorecard also looks at home loan refinancing as well as other indicators of housing market stability.
According to HUD Assistant Secretary Raphael Bostic that while some homeowners benefited from refinancing or buying at a low mortgage interest rate, other homeowners are still facing foreclosure in the last 21 months. Because of this he explains that the government is working on additional help for homeowners that are unemployed.
The government loan modification program has been showing success for those that make it to a permanent status. Those participants that have made it to the permanent home loan modification status have a 90 percent home retainer ship after 9 months according to the October Housing Scorecard. The steps for the government mortgage refinancing includes existing homeowners to work with their lenders to reduce their monthly mortgage payments by either lowering their interest rates, extending the loan terms or repayment, or by earned principal forgiveness. After they begin the process a trial home loan modification begins which is usually for a few months. The homeowners needs to successfully complete the trial and then it becomes permanent.
By: Victoria Brown
Source: www.hud.gov/scorecard