Distressed homeowners in Maricopa Arizona may see some relief in the form of principal reductions. But don't hold your breath!
The Obama administration announced that they are making a few changes in the HAMP program. Among them is tripling the incentives they offer to investors that agree to reduce principal. In addition, they are allowing second motgages to be factored into the mortage payment to income ratio. Investors also may find some relief as rentals will also be allowed into the program.
How much these changes will actually help homeowners remains to be seen due the the ineffectiveness of the program in the first place. Since HAMP launched in March 2010, more than 900,000 permanent modifications have been conducted. The Treasury originally estimated the program to reach between 3 million to 4 million borrowers. As of Dec. 1, less than 1 million were estimated to be eligible for the program under past rules.\
Without a doubt, the Hamp program is not for everyone. But hopefully this is another step in the right direction towards it making a greater impact. I'll reserve my judgement.
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