The US Government has established a program to assist with modifying loans for properties under foreclosure distress. The Home Affordable Modification Program (HAMP provides incentives to loan servicers and financiers willing to modify loans for real estate with loans at the risk of foreclosure.
HAMP was set up to have 500,000 high risk loans under trial modification before November 1, 2009. This goal was achieved by October 1.
The Boston Globe has reported that, while Boston-area foreclosure auctions are diminishing, the number of foreclosure petitions is increasing. The worst year for Massachusetts foreclosures was 2007, the Globe says; but 2009 may yet surpass it.
However, there are options available to homeowners who are at risk of having their property foreclosed due to mortgage stress. Loan servicers and financiers are often willing to change loan terms and also to refinance at lower interest rates to prevent their customer’s loans from going into default. Homeowners who are beginning to, or are already struggling to make their mortgage repayments should contact their financier as soon as possible. Putting your head in the sand and hoping the problem is going to go away is not the way to approach the issue; particularly when financiers are so willing to assist with mortgage stress.