Digital News Report – The government loan modification program has been credited with saving homes, but there are some new warnings this week.
The program is designed to stop the decline in home prices while helping Americans stay in their home. The Obama administration says the goal of the comprehensive Financial Stability Plan is to “address the key problems at the heart of the current crisis”.
Complaints are arising that banks are not working fairly with borrowers who have made all of their payments during the trial period. The problem is rare according to NPR.
The Making Home Affordable program offers homeowners free consultations. The consultants are paid by the government, so the program is essentially free.
The Home Affordable Modification Program (HAMP) gives homeowners the opportunity to modify their mortgages. Many Americans have found themselves underwater with declining home prices.
The Obama administration said they are “on track to offer help to 3 to 4 million homeowners by 2012”.
While interest rates are at historic lows many homeowners are unable to take advantage of them. The Home Affordable Refinance Program is designed to provide the opportunity to refinance into more affordable monthly payments.
The Second Lien Modification Program (2MP) gives homeowners with a second lien the opportunity to modify their second mortgage.
If none of the programs fit, there is one final alternative to the mortgage and foreclosure dilemma. The Home Affordable Foreclosure Alternatives Program helps homeowners avoid foreclosure with a short sale or deed-in-lieu of foreclosure.
By: Tina Brown