Lenders are Being Encouraged to Stop Foreclosures Through Loan Modifications

June 14, 2010 - PRLog -- Today’s lenders are working in cooperation with the government and the Home Affordable Modification Program to allow more Americans than ever before to have their home loans altered through loan modification services.

Normally a lender like a major bank would not being doing too much in order to get a loan modified so that a person can avoid foreclosure. The truth is that in today’s world lenders are being asked by the government to go along with loan modification plans. This is used to not only help a lender to save money but to also make sure that the American economy is secure. In fact with the support from the government a lender may not even have to lose a great deal of money by working with a foreclosure prevention agency.

The main program that is being offered to lenders is the Home Affordable Modification Program. This is a program that is administered by Fannie Mae and was established by the Making Home Affordable Program that is being handled by the Obama Administration.

One of the main things that the program is doing as a means of encouraging lenders to go with it is to reimbursement lenders that allow loan modifications to take place. The government will pay an amount of money to the lender that will help to compensate the thousands of dollars that could be lost by the lender as a result of the loan modification service. This is something hat can be used to help with offsetting any potential losses that could take place due to a loan modification practice.

When this money is offered a lender will be able to work with a borrower or a third party that is representing a borrower to help with making sure that a good loan modification plan and repayment plan can be set up for one’s loan. This is so the borrower will be able to work with less money each month or with a new interest rate that the borrower will have an easier time handling.

The amount of money that a lender can work with is incredibly large. The program is working with a total of about $75 billion dollars on this plan. Two thirds of that total will be paid off through the use of Troubled Asset Recovery Program funds.

The program is expected to work for all sorts of lenders in that it should be able to have enough money to work with at least four million borrowers who need help with taking care of their loans. This is something that will help to give lenders a greater ability to work with more people and more loan modification companies to help with making sure that everyone can pay off all of their loans.


The 1st Foreclosure Prevention Company is an agency that is devoted to getting Americans to avoid foreclosure. The company offers loan modification solutions by working with creditors to help with finding new ways of how a loan can be altered for one’s needs.

Visit us at: http://www.1stforeclosureprevention.com