There are a number of programs to assist homeowners who are at risk of foreclosure that the Obama Administration has implemented. Many of these programs are administered through the United States Department of Treasury and HUD. Today I want to talk about what refinance or modifications programs that are available. Below is a brief description of these various programs.
Your first step should be to contact your lending institution directly about what programs are available to you. If you are experiencing a difficult time contacting your financial institution then go to the bottom of this article to get information on companies that can help you get in touch with your mortgage lender.
MHA Program (Making Home Affordable)
This is a crucial part of the Obama Administration’s broad strategy to assist homeowners is preventing foreclosure, while improving the nations housing market and still improve the country’s economy.
Homeowners can decrease there monthly mortgage payments and into a more comfortable loan at today’s historic low interest rates. For the hundreds of thousands of people out there who have an unaffordable mortgage payment, this program can provide an exit with out getting foreclosed on. There is even an option for unemployed homeowners along with homeowners who owe more than what there home is worth. Below is a list of various programs the government has to offer. I suggest you read through all of them and find a program that best fits your situation and needs.
Refinance or Modify Your Existing Loan for Reduced Loan Payment
1. HAMP (Home Affordable Modification Program): HAMP decreases your monthly loan payments to 31% of your stated monthly pre-tax income to make your payments easier to pay. The standard HAMP modification results in over 35% drop in your monthly loan payment. Eighteen percent of HAMP homeowners decreases there payment by $900 or more in some cases.
2. PRA (Principle Reduction Alternative): This program is designed to help homeowners who are more than what the property is currently worth to get the lenders to reduce the principle amount that is owed on the property.
3. 2MP (Second Lien Modification Program): If you are currently under the HAMP program on your first mortgage lien then you may be eligible to qualify for 2MP on your second mortgage lien. If you have a HELOC (home equity line of credit) that is making it difficult for you to make your monthly payment then you may qualify for a 2MP as well.
4. HARP (Home Affordable Refinance Program): This program is designed for homeowners who are current on there mortgage loan but are unable to refinance because the home value has dropped. HARP was created to help these homeowners refinance into a more stable and affordable monthly l oan payment.
If you are experiencing difficulties getting a hold of your mortgage company then click here to get more information on companies that can assist you in getting a hold of them.