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Digital News Report – The Obama loan modification program was designed to help struggling homeowners who owe more on their house than it is worth. The program has been expanded recently to help Americans who have lost their job and are unable to make their mortgage payments.
There are various programs including one to help homeowners who were able to pay their mortgages on time but are not able to refinance because their home price has declined too much.
Another part of the program helps struggling Americans who are unable to make their payments because their interest rate adjusted higher. Counselors working with the lender could modify the existing loan to lower the interest and payments.
Another new section of the program involves second liens. The 2nd Lien Modification Program (2MP) will help homeowners lower their payments on their second home loans.
Finally, if a applicants don’t qualify for a loan modification, the Home Affordable Foreclosure Alternatives Program offers homeowners $3,000 to help “transition to more affordable housing when they complete a short sale or deed-in-lieu of foreclosure”.
The Home Affordable Modification Program (HAMP) is free for the homeowner. The Obama administration has set up “homeowner events” to help save homes from foreclosure. The next event will be on September 38th 2010 in Grand Rapids Michigan.
The event begins at 1:00 PM and ends at 7:30 PM at the DeVos Place
303 Monroe Avenue Northwest, Grand Rapids, MI 49503.
By: Tina Brown