Digital News Report – The government loan modification program is still in effect and the government is continuing help homeowners in danger of losing their home to take immediate action.
“Act Now to get the Help You Need” the program brochure reads. The purpose of the program was to slow the decline of home prices while helping homeowners keep their home. So far the program has helped 600,000 American families.
Despite the passage of a bill killing the loan modification program, the program is still very much alive. The legislation will still need to be voted on by the Senate and signed by the President, which is very unlikely.
Home Affordable Modification Program (HAMP), which includes the Making Home Affordable program, provides monetary incentives to servicers to modify a mortgage. The service is free for the homeowner.
“Foreclosure rescue and mortgage modification scams are everywhere,” the government said in a statement. Beware of companies and people who want to charge you an up-front fee.
There are critics who say the program has hurt the homeowner. Some homeowners may make it through the temporary modification period before they are denied a permanent modification.
Some homeowners are working out temporary modifications on their own. But beware, you may be responsible for the reduced payments plus interest.
By Tina Brown