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Digital News Report – While some banks are being sued for not providing information and defrauding customers, there are still loan modifications being performed.
The government loan modification program provides homeowners options that were not available before the economic crisis. The approved councilors are provided free of charge by the Federal government and there are several aspects to the program.
In the last quarter alone, one-million families were able to refinance under the program. This week Bank of America was sued by the states of Arizona and Nevada. The Charlotte based bank is being accused of not providing timely information.
There are several aspects to the Making Home Affordable Program. The Home Affordable Modification Program (HAMP) provides eligible homeowners the opportunity to modify their mortgage. Even if the homeowner loses their job, they may still qualify for HAMP.
Many homeowners have trouble qualifying for the program because of a subordinate lien. The Second Lien Modification Program (2MP) is designed to help those customers. The 2MP provides second lien modification help. Once the second is modified, the homeowner can take advantage of the Home Affordable Modification Program.
Interest rates are at historic lows. The Home Affordable Refinance Program provides homeowners the opportunity to take advantage for those rates. Rather than modifying the loan, customers are able to refinance loans held by Fannie Mae and Freddie Mac.
If the homeowner is unable to qualify for the other programs, the Home Affordable Foreclosure Alternatives Program can still help. Rather than face the negative ramifications associated with a foreclosure, homeowners may minimize the effects on their credit scores by a short sale or deed-in-lieu of foreclosure.
By Tina Brown