Available Programs for Struggling Homeowners


Filed under: HARP


homeownerUnfortunately, there are many homeowners still struggling to make their mortgage payments. The good news is that there are many government programs that can help. The Federal Housing Administration and Making Home Affordable Program offer various options to those homeowners in a financial bind.

According to a recent article in Credit.com by AJ Smith, here is a look at a few programs that may offer assistance.

  1. The Home Affordable Refinance Program (HARP)

This program allows specific homeowners to refinance even if they might be underwater on their mortgage. In order to qualify, a homeowner must have a current loan-to-value ratio that is greater than 80%. If the loan is through Fannie Mae or Freddie Mac and the homeowner is current on their payments, it could mean lower mortgage payments. It is important to note that this program is set to expire at the end of 2016.

2. The Home Affordable Modification Program (HAMP)

HAMP is for a homeowner whose financial situation has deteriorated since the home was purchased. The program is more of a modification to your current loan to mainly avoid foreclosure. HAMP is also set to expire at the end of 2016.

3. The Home Affordable Foreclosure Alternatives (HAFA)

This is for a homeowner who can’t afford his or her mortgage payment and has to “transition” out of being a homeowner. The options include a “short sale” or a “deed-in-lieu of foreclosure.”

4. The Hardest Hit Fund (HHF)

HHF will help a family who is facing foreclosure stay in its home in states that are especially hurt by the housing crisis and other economic distresses.

5. The Principal Reduction Alternative program (PRA)

This program works with HAMP in encouraging mortgage servicers and investors to reduce the amount of principal on mortgages backed by the government. The homeowner must prove he or she is facing a financial hardship and prove that there is sufficient, documented income to make a modified payment.

6. The Second Lien Modification Program (2MP)

2MP also works with HAMP for a homeowner who is having difficulty making mortgage payments due to a HAMP modification, equity loan, home equity line of credit, or some other type of lien.

7. The Home Affordable Unemployment Program (UP)

This is a supplemental plan to HAMP for a homeowner who is unemployed and needs a mortgage payment reduction. The government can reduce a homeowner’s payments to 31% of your income or possibly suspend your payment for 12 months or longer, depending on the need.

For all of theses programs, there are some qualification rules so be careful to check with the program to see if you qualify.

If you have any questions about these programs and/or anything to do with the mortgage industry, please give me a call and we can discuss what is on your mind.

Source: http://www.foxnews.com/leisure/2015/09/01/struggling-with-your-mortgage-7-programs-can-help/


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