Home Loan Modification Program Assistance Plans For Homeowners–Will The Repeal Of HAMP Hurt Or Help?

Home loan modification program assistance has been sought out by numerous homeowners over the past months as the Making Home Affordable Program has been one of the lifelines that homeowners have heavily used as a way to gain more affordable monthly mortgage payments and avoid foreclosure as a result. However, recent reviews from Congress have questioned whether the Making Home Affordable Program should continue and in a recent report from the Congressional Committee on Financial Services, these governmental foreclosure mitigation programs are being considered for termination.

While the report from the Committee stated that they will examine these programs to determine reasons for what many feel to be a failing endeavor and whether the Making Home Affordable Program could be revamped to see success as many believe that the current programs structure and the number of homeowners who have been helped are simply not enough to justify the cost.

Yet, there are some homeowners who feel that a repeal of the Making Home Affordable Program would not really hurt individuals who are seeking foreclosure prevention assistance. In fact there are many analysts who believe that the modification program may be hindering housing recovery as these foreclosure mitigation efforts are delaying the foreclosure process related to homeowners who strategically default and homeowners who continue to redefault despite being in a modification program are also felt to be delaying the housing recovery as modifications are simply delaying the inevitable.

Obviously though, homeowners still worry about what will become of their home if this federal modification program is not an option. There have been homeowners who have benefited from home loan modifications offered through the federal government program, but many argue that the number that was originally intended to be helped is simply not going to be met. Homeowners continue to argue that simply because an initial goal will not likely be reached, there are still individuals who have and still can be aided by these foreclosure prevention efforts and repealing HAMP could cause a greater number of foreclosures and lead to more empty homes added to the backlog of properties many banks are still holding.

On the other hand, there are arguments that the government could save a substantial amount of money were they to eliminate the Making Home Affordable Program, as homeowners may still have modification options available from proprietary home loan modifications. Servicers have reportedly modified a greater number of home loans through in-house programs than through the federal modification initiative, which leads many to believe that homeowners who may benefit from mortgage payment assistance will not simply be left sitting in the cold if HAMP is indeed repealed. Yet, the Making Home Affordable Program is just one of many a potential cuts that could be proposed as Congress looks for ways to reduce the national deficit by eliminating needless spending.