Good news for unemployed homeowners struggling to pay the mortgage

The Obama administration  on Friday will announce changes to its Home Affordable Modification Program (HAMP) that will provide financial aid for unemployed homeowners with emphasis on writing down the principal of troubled loans.

With the jobless rate still near 10%, more homeowners are falling behind on payments and risk falling into deliquency. The new measures would help by giving unemployed homeowners three months of forbearance, giving them much-needed breathing room. Reducing the principal of the loan, rather than simply reducing the mortgage interest rate, will also be considered.

Keeping people in their homes, and holding down foreclosures, is key to helping the housing market recover.

Read more at CNBC….

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One Response to Good news for unemployed homeowners struggling to pay the mortgage

  1. James Mucci says:

    Yes they announced that there is now an FHA Home Affordable Refinance Program which “encourages” at least a 10% reduction in principle, but still voluntary, so we shall see.

    Hopefully it helps the people who need it.

    I have personally closed a few conventional Michigan refinancing loans with the current Home Affordable Refinance Program.

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