The Obama administration is expanding eligibility for its Home Affordable Modification Program (HAMP). They are expanding it to borrowers with higher debt loads and tripling the incentives it pays banks that reduce the principal on loans. It will also offer incentives to Fannie Mae and Freddie Mac to reduce the principal on loans; which it had previously only offered to private lenders and banks. The program was initially set to expire at the end of this year but was extended to December 2013.
The HAMP program was originally designed to help 4 million borrowers when it was first introduced in February 2009. However, HAMP has helped fewer than 1 million homeowners. The changes to HAMP will allow many more borrowers to qualify for the loan modification program. And, it will hopefully help them stay in their home.
The changes in HAMP do not take effect until the end of April. But struggling homeowners can reach out and seek foreclosure prevention immediately. By doing this, they can learn their options; which could include trying to hold on until the new HAMP is ready.
If you have questions about foreclosure, loan modification, bankruptcy, or other alternatives, please feel free to call my office at 954-484-9987, send an e-mail to emil@fleysherlaw.com, or complete the contact form below.
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