Solving the Foreclosure Crisis with HAMP

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Currently the FDIC has estimated that 5% of homes in America are currently in foreclosure. Providing a solution to this economic catastrophe is complex and will be dependent upon many solutions working together, with each other. It is unfortunate that so many homes are in foreclosure, but we are very fortunate to have a government who has been so generous to bail out banks in their time of need, and help families stay in their homes by modifying their mortgages. The Obama Administration has begun the Home Affordable Modification Program (HAMP), which provides counselors and loan modifications to homeowners who desire to modify their mortgages and remain in their primary residence. Homeowners can receive free help thru HAMP provided by the U.S. Department of Treasury and the Department of Housing and Urban Development (HUD) at website www.makinghomeafordable.gov. This website is a great source for ending foreclosure in America, but statistics provided by the Obama Administration show that approximately only 20% of loan modifications applied for are in a permanent phase, and saving homeowners over $6000 per year in mortgage payments. HAMP has determined this number to be successful with the program expectation.

The HAMP program is proving successful, yet slow. It is evident that there is still room for improvement to this program, as we see that homes are still being foreclosed on, and 80% of mortgage modifications in America still have no permanent mortgages. To assist HAMP with the overflowing workload of mortgage modifications, it would be a great benefit to extend designated responsibilities to each individual state. The benefit of extending responsibility to each state will heighten the efficiency of the HAMP program and...

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...e in our nations lending and spending.

There is no doubt that through the Obama Administration’s diligent efforts, that the foreclosure crisis in America will soon be a distant memory. Adding localized HAMP mortgage counselors to rural and urban areas will also bring jobs which will in turn promote spending across our great nation. The new regulation and supervision on bank lending will enable more homes to be affordable to more Americans. Just as each electrician has city codes to follow, and city inspectors to answer to, our Banks must have codes and officials to answer to as well. It is quite unfortunate that banks got so “creative” with their lending that now they need to be supervised by government. Our great country is so young that this brief economic crisis will be a lesson learned, and economic lending and spending will flourish without further ado.

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