On Friday, the White House announced changes to its Home Affordable Modification Program (HAMP). Seeking to help troubled homeowners from foreclosure, the changes will assist additional people facing housing problems and give more relief to those already in the program.

HAMP had been created to help homeowners stay away from foreclosure by enabling them to decrease monthly loan payments and occasionally cut the amount owed on their loans. The program has lenders voluntarily lowering the interest rate while the government subsidizes them to do so.

According to the Treasury, as of Nov. 30, banks have decreased principal amounts owed by approximately 36,000 borrowers and 910,000 of them near foreclosure, have been able to get their mortgages permanently changed for lower payments thanks to the program.

Changes

The first change will include the tripling of incentive payments to investors for decreasing the amount owed by borrowers; this is also known as principal reduction.

In addition, the program will now include both tenant-occupied and vacant properties that the borrower plans to rent. The Treasury said this expansion will “provide critical relief to both homeowners that live in their homes and those who rent their homes, while further stabilizing communities from the blight of vacant and foreclosed properties.”

Additional changes include …

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