Digital News Report – The Making Home Affordable Program provides money incentives to banks to provide loan modifications. The program is designed to homeowners avoid the “pain” of foreclosure.
In a recent statement the government admits problems with the program. This has prompted changes and “additional program enhancements” to help more homeowners. The U.S. Department of Housing and Urban Development (HUD) says that councilors need to make every effort to enroll eligible homeowner.
Interest rates are at historic lows but many Americans are having trouble qualifying for a loan. The Obama Administration says the program aided 1 million families refinance their home in November.
There are several aspects to the program. The Home Affordable Modification Program (HAMP) is designed to help homeowners modify their current mortgage. If a second is encumbering the property there is a Second Lien Modification Program (2MP).
The Home Affordable Refinance Program helps homeowners with financing through Fannie Mae and Freddie Mac. Low equity has hampered refinancing from many Americans. This program is designed to prevent that.
Since the program started in April 2009 more than 3.73 million modification arrangements were started.
By Tina Brown