How will Struggling Homeowners Make-out with out HAMP
The Obama loan modification has expired. This means that homeowners who need to modify their mortgage due to a financial hardship will not have the same support that homeowners in the same situation have benefited from over the last 5 years or so.
Now lenders are still able to restructure loans like they did under the Home Affordable Modification Program. But… they are also able to not. I for one think the lenders will choose not to modify loans like they did under the assistance program.
Here are my reasons lenders won’t be so anxious to work with struggling homeowners.
- No Financial Perk from the Government – Under the Obama loan modification program lenders were given a 1,000 dollars per loan modification. That ain’t so now. That will be a big hit.
- No Published Data – With the program lenders were exposed to the public because the number of homeowners seeking help and the result of their requests were published. Thus if a bank wasn’t working with homeowners they risked some big image issues.
- Housing Market is Better – The housing market is doing better thus lenders will be more likely to recover bad debts via foreclosure sales.
There is still some hope for homeowners. The Obama refinance program or the Home Affordable Refinance Program – HARP is still going strong and available to homeowners who want to refinance out of a high interest mortgage into a lower fixed rate interest home loan that demands lower monthly mortgage payments.
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