Obama’s HAMP Program Helps Some Homeowners With Home Loan Modification
Posted on 19 February 2011. | Posted by Kathy Baron
Making Home Affordable Program May Provide Rescue From Foreclosure To Some Distressed Homeowners Seeking Mortgage Modification
The home loan modification program, set up by the government, was developed to rescue home owners from foreclosure and slow the drop in home prices. The Making Home Affordable Program’s website has been updated in order to make it more user-friendly. There’s now a toll-free number on the home page and a banner that rotates to display a number of success stories. This program has proved to be a help for some homeowners.
But the government is still working out some problems that other homeowners have run into. Some servicers, like Wells Fargo, Bank of America, Citibank, and Chase are finding it more profitable to foreclose on property than to make permanent mortgage modifications. Some homeowners are having their applications for loan modifications rejected without being given any explanation why.
In other instances, homeowners have been given trial modification periods, but the loan servicer began foreclosure proceedings while the homeowner waited to be given a decision about a permanent mortgage modification. This has happened despite the fact that the homeowner filled out all the required paperwork and fulfilled all the stated requirements during the trial period.
Even when the Home Affordable Modification Program, or HAMP, has worked, it does not work for everyone. Some applicants simply don’t qualify for the program and sometimes modifications to the original home loan is forbidden in its documentation.
But even considering these problems, homeowners in distress should look into HAMP, because it could be the answer to their particular situation. In addition to home loan modification, the program helps some homeowners to refinance and it provides some aid to the unemployed.
The government reports that the average applicant to the Home Affordable Modification Program has a median credit score of 570, makes an average of $46,000 a year, and is in debt to the tune of $232,000. The typical applicant owes more than his property is worth, with a 118% loan to value ratio.
Related articles:
- Millions Of American Homeowners Rescued By HAMP Loan Modifications
- Study The Pros And Cons Before Taking Out A Home Equity Loan
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