The current housing market provides a variety of options for potential buyers. Interest rates are still low and home prices are affordable.
But, for homeowners who are having financial difficulties and foreclosure or a short sale may be the only option, there is help through the Making Home Affordable (MHA) collection of government programs.
The program is also a collection of alphabet soup! Here’s a rundown that will help you navigate the options and, if you are in financial distress, find which would benefit you the most. Each program has different qualifications, so for more information on that, contact your mortgage holder and visit the Making Home Affordable website.
Lower your monthly mortgage payments. Through the Home Affordable Modification Program (HAMP), homeowners can reduce their monthly payment to 31 percent of their verified gross income. Qualifiers complete a three-four-month trial period to make sure they can make payments on time. There are also other aspects of this program that can help reduce the principle, get a second lien modification (2MP), an FHA modification and one for veterans too.
The Home Affordable Refinance Program (HARP) helps homeowners who have a Fannie Mae or Freddie Mac backed mortgage who can pay monthly, but can’t refinance at a lower interest rate because a decrease in their home’s value. This type of assistance keeps the homeowner current on payments and out of the foreclosure scenario.
The Home Affordable Foreclosure Alternatives Program (HAFA) is designed for homeowners who can no longer afford their homes, but want to avoid the negative effects of foreclosures. The program provides incentives to complete a short sale or deed-in-lieu of foreclosure.
There is no charge to apply to any of these programs and a HUD-approved counselor will discuss the ramifications with the homeowner. This is important to remember, since a number of scams have surfaced. If anyone asks you to pay a fee in exchange for counseling, walk away. Don’t sign anything under pressure, and don’t sign you deed over to anyone or make a mortgage payment to anyone other than your mortgage provider.
For more info, contact your lending institution or us to help simplify these programs.