Obama Administration to Announce New Loan Modification Initiatives

March 26, 2010 - Washington - A number of interest groups and watchdogs have criticized the federal government's Home Affordable Mortgage Program (HAMP) for failing to stem the rising tide of mortgage defaults and foreclosures. According to reports from The Associated Press, the Obama administration will announce new initiatives on Friday.

While details on the new initiatives are currently unclear, sources tell the Associated Press that President Obama will be putting more money into foreclosure prevention efforts. There will also be a new initiative designed to reduce the mortgage burden on Americans who have lost their jobs. Whether this assistance will be in the form of loan modifications or outright assistance remains unknown.

These initiatives may be designed to get more homeowners through the HAMP program. Currently only 170,000 homeowners have received a permanent loan modification through the program, even though more than one million homeowners started the process since 2009. These statistics indicate that many homeowners are not making it through the program's three-month trial period. A number of consumers have complained that the banks are throwing up unnecessary delays and stall tactics that make it impossible for them to complete the trial period successfully.

If you've encountered unfair or unjust treatment while pursuing a home loan modification, contact an experienced Massachusetts class action attorney right away.