With many homeowners still struggling the government revises HAMP [ Home Affordable Modification Program ] .. but the proposed changes don’t take effect until the end of April.

Q. Do you think these new changes to the HAMP program will help more homeowners?

A. Yes

The administration also said it would offer incentives to Fannie Mae and Freddie Mac to reduce principal on loans. Previously, the government had only offered incentives to private lenders and banks. The program was also extended to December 2013. It was initially set to expire at the end of this year.

Q. Why will banks be more willing to participate?

A. Eligibility for Debt to Income is going to be better for homeowners and the amount banks are being paid to participate in HAMP is tripling.

Q. Why are they tripling the incentives?

A. The original HAMP was designed to help some 4 million mortgage borrowers when it was first introduced in February, 2009, HAMP has helped fewer than 1 million homeowners.

To read more about the HAMP changes read this HAMP article from Reuters

Here is the Government website for current guidelines