Today, as with every new government program, adjustments are being made to the Housing Affordable Modification Program. HAMP as they call it, will benefit responsible homeowners that are experiencing a financial hardship through no fault of their own. How can this be? For starters, wage earners that have been laid off, going through a divorce, death of a spouse,etc. Millions of responsible families who had made their monthly payments and fulfilled their obligations ,saw property values fall and unable to refinance at lower mortgage rates.
This program has been in effect for over a year ,but the number of eligible participants and success rate for restructuring mortgages for homeowners has been slow . As with any program, lack of experienced individuals to process the paperwork, lack of clarity of the objective , and let’s not forget, taking a wait and see approach before implementing procedures by various lenders.
Now that mortgage lenders have a clearer understanding, as well as a financial incentive to move forward, let’s see how this stems the rising wave of foreclosures . For the record ,HAMP has provided more than 1 million struggling homeowners a second chance to stay in their homes – with each homeowner in a modification program saving more than $500 per month on average.
