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Digital News Report – Fewer Americans are seeking help under the government loan modification program, according to data provided by the Obama Administration. There will also be some new rule changes in December and January.
The government loan modification program is designed to help keep homeowners in their home. It has worked, although some question whether it has cost the taxpayer too much.
In their latest scorecard the department of Housing and Urban Development (HUD) reports that only 639,750 homeowners were participating in the loan modification program. That is down from 640,300 a month earlier in October.
Not all consultants are qualified under the loan modification program. On December 29th modification companies will need to divulge whether they are associated with the federal government program or not. The program is supposed to be free to homeowner.
On January 31, 2011, consultants will not be allowed to charge an up-front fee until the homeowner receives a written loan modification offer. The homeowner must also accept the offer. This will help prevent homeowners from losing their home despite paying fees to a consultant.
By: Tina Brown