DS News just wrote that Obama has just announced modifications to HAMP - Home Affordable Modification Program. The announcement includes a second look at borrowers who may have not qualified under the last HAMP program with a change in debt to income requirements for owner occupied homes. It even includes an extension of the program to investor owned homes which prior to this have not qualified for HAMP or any modification programs. This may provide some relief for investors with rental properties for the first time since the crisis began.
This could produce a further foreclosure delay in some previously rejected borrowers under the prior HAMP programs, by now requiring requalification of already severely delinquent borrowers again (this is the third modification to HAMP in the past year) for a newly modified HAMP program. This has been the pattern over the past year with many loans thus avoiding foreclosure and swelling the shadow inventory of delinquent homes. Hopefully many more people will be able to keep their homes and work to get them current through this program. This is a developing story, so more details should come out over the coming week.
The announcement also states that the deadline for HAMP will be extended to December 31, 2013. Election years are great for the incubant to make a lot of programs available to homeowners (voters). Watch for more information to come available.