It’s a happy day in Orange County, California! And everywhere else where there are struggling homeowners in need of some relief!

The Home Affordable Modification Program (HAMP), which was due to expire at the end of 2012 has been extended through December 31, 2013. This is welcoming news for homeowners having difficulty making their mortgage payments and possibly facing foreclosure.   The additional year will also give lenders more time to make a dent on the HAMP program goal of 4 million families helped. This is rather ambitious since to date less than 1 million HAMP loan modifications have been awarded.

Along with the time extension, the HAMP program is incorporating the following changes effective immediately:

  • Tenant-occupied property is now eligible for HAMP loan modifications. Until this change to the program guidelines, only owner-occupied properties qualified for HAMP.
  • The administration tripled the Treasury-paid incentives for lenders who modify loans under the program.
  • HAMP will now include incentives for Fannie Mae and Freddie Mac when they agree to principal reductions on home loans backed by the government-sponsored enterprises (GSEs). Before the change, HAMP only allowed supported principal reductions on non-GSE mortgages.

There are no provisions to the Making Home Affordable Program (MHA) that include an extension for the Home Affordable Foreclosure Alternatives (HAFA) short sale program. But since the Obama Administration seems to support the notion that our housing market recovery is going to take significantly longer than previously anticipated, I expect a HAFA extension is right around the corner. Well, I hope so anyway. Stay tuned.

 

Just so you know:

I list and negotiate short sales in Orange and Los Angeles Counties in the beautiful state of  California. However, I am happy to answer any questions regarding anything having to do with saving your home. So, feel free to drop me a line!

 

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