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While officials consider options with foreclosures, consumers may consider debt management plan to help with credit card debt
By Edith Barlow on Feb 27th, 2010
The Obama administration is considering requiring that all home loan foreclosures be reviewed under a federal modification program, Bloomberg News reported recently.
Through the change, troubled home loans would go through the screening process of the Home Affordable Modification Program. So far, more than 116,000 permanent modifications offered through HAMP have been accepted by homeowners.
Meg Reilly, a spokeswoman with the Treasury Department, said that the new review process is one of many the administration is considering in order to help the housing market.
"This proposal has not been approved and there are no immediate planned announcements on the issue," Reilly told Bloomberg News.
Though HAMP has helped some homeowners, the program has come under scrutiny from both industry experts and consumers. The former said that it may only delay the inevitable when it comes to foreclosures, while the latter said that the process was confusing.
Homeowners who are facing difficulties may have options other than HAMP to consider in dealing with debt. Though it won't help with their mortgages, a debt management plan could make it easier to pay off credit card debt by lowering interest rates. As a result, they may find it easier to pay off their home loan debt.
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