Loan Modifications May End

I have worked with talked to many homeowners that have acquired a Loan Modification from their Lenders.  It has helped many homeowners stay in their houses but has also given false hope to others that only failed again within the next year.  Last week a House Financial Services Subcommittee voted to eliminate two programs designed to mitigate the impact of the housing meltdown.

Republicans on the Committee voted unanimously to shut down the Emergency Homeowner’s Loan Program (EHLP) and FHA’s Short-Refinance Option.  EHLP is not scheduled to go into operation until next month and the Short-Refi program got off to a slow start and has, as yet assisted only a few homeowners but also has cost $0 in federal monies. 

The next two housing recovery efforts on the chopping block: HAMP and the Neighborhood Stabilization Program. With the Committee scheduled to vote Wednesday on the fate of both programs, supporters are beginning to fight back.

While HAMP has been plagued with problems, at last count it had moved 600,000 borrowers into permanent loan modifications while another 126,000 are in the required three month trial modification period.  The Times said the $6 billion Congress appropriated for the program over the last two fiscal years was simply not enough, it has all been obligated and “House Republicans want to eliminate a third round of financing – $1 billion – promised in the financial reform law.”

Rates are still low and look to refinance to a permanent Fixed Loan.  This will give you the option of a low rate for the next 30 years.  Check out your payment at XpressMortgageQuote.