Digital News Report – The Obama loan modification program is helping Americans keep their home and avoid foreclosure. Counselors are hired to act as intermediaries between the bank and the homeowner, and apparently it is working.
There are incentives for both the bank and the homeowner to work-out a loan modification. Last week the Obama Administration admitted that there were still many homes in the “pipeline” and there is a “hard road ahead”. But the program is working for many Americans.
There are several aspects to the program. The Home Affordable Modification Program gives homeowners the opportunity to modify their mortgages.
The Second Lien Modification Program (2MP) helps homeowners modify their second home loan making it easier to modify their first mortgage.
Interest rates are at historic lows. The Home Affordable Refinance Program gives homeowners the opportunity to take advantage of the rates.
If the applicant can’t take advantage of any of the modification programs, there is a solution. The Home Affordable Foreclosure Alternatives Program gives the homeowner the option to avoid foreclosure with a short sale or deed-in-lieu of foreclosure.
The counseling is absolutely free. The government warns Americans against paying upfront fees. There is government help for homeowners using the various loan modification programs.
By Tina Brown