As part of the President’s plan to end the foreclosure crisis and help struggling homeowners, the current program benefits under the Home Affordable Modification Program are being extended. After the disappointing news of the program’s effectiveness efforts are being made to ensure more borrowers will qualify for loan modifications. The government also plans to encourage more lenders to engage in loan debt forgiveness practices.
Will It Work?
Most people are pessimistic about the chances of government initiatives helping the current housing market crisis, partially because of the nature of the damage done. Besides having little control over the actions of lenders or holding much influence over mortgage giants, the government’s hands are tied. While efforts to expand the current homeowner assistance program are appreciated, many feel only focus on one small part of the problem.
It has become clear that helping more homeowners qualify for mortgage debt relief is simply a link in the foreclosure crisis chain. Depressed home values, poor borrower equity and lack of mortgage options are other big areas critics of the HAMP cite as areas that need major attention. Housing market experts are hoping that future efforts can be aimed at helping homeowners rebuild equity, boost home values in each community and loosen up standards for new mortgage applicants.