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Digital News Report – Homeowners are receiving both temporary and permanent relief from foreclosure using the Obama Administration’s Home Affordable Modification Program (HAMP).
One report suggests that homeowners may receive loan modification rates as low as 2 percent with payments as low as $1,000. Even more importantly, they are saved from foreclosure, which was the point of the program. The final rate will depend on various factors.
In a statement released this week, the government said the program provided 300,000 permanent modifications in April alone. That is a 68,000 (13 percent) increase from the month before.
Program officials are calling for more “transparency” and an improvement to the homeowner “experience.” The program is free to the homeowner but the government still warns of “foreclosure rescue scams”.
There are incentives to the bank to offer a loan modification. Underwater homeowners will also benefit from the program. From the data released this week, it looks like it is working – homes are being saved.
By: Tina Brown