FHA Program To Help Stuggling Home Owners

Here is a press release from the National Association of REALTORS today about the FHA Making Home Affordable Loan Modification Program:

The newly enhanced FHA Making Home Affordable Loan Modification Program will help struggling home owners—who qualify—to significantly reduce their monthly mortgage payments and stay in their homes, said NAR President Charles McMillan in a public statement.

The changes expand the Obama administration's Making Home Affordable Loan Modification Program to include FHA borrowers. NAR is optimistic that this will have positive implications for thousands of home owners, McMillan said.

“Until foreclosures have been significantly reduced and housing inventory reaches a more normal level, there can be no true housing recovery," McMillan said. "The FHA–HAMP program will go a long way in achieving these important goals by helping FHA servicers bring mortgages current, buy down loans by up to 30 percent of the unpaid principal balance, and defer these amounts until the first mortgage is paid off."

NAR will continue to call on Congress and the Obama administration to expand the first-time home buyer tax credit to all home buyers and continue efforts to streamline the short-sale process.

"Along with the expanded loan modification program, addressing these issues will help reduce foreclosures and housing inventory, and stabilize home values," McMillan said.

Source: NAR