Making Home Affordable Program
The Making Home Affordable Program helps homeowners who have fallen behind in their payments for reasons out of their control.
I have a family members who became delinquent in paying their mortgage. Unknown to them as first time home buyers, they had been taken advantage of by the irresponsible financial industry. Now it was all catching up to them even though the husband was working three jobs, 6 days a week. Their third baby had been born a few months before so she was unemployed. Their taxes went up so their escrow was increased. Their car died so they had to buy a used car with the emergency cash they had saved. His overtime was reduced. It just couldn’t be helped no matter how much they tried to cut corners in their budget.
The couple were in fear of receiving a notice of foreclosure when they learned about the Government’s Make Home Affordable Program – a plan to help struggling mortgage holders get relief. The homeowners contacted their lender, completed the application, and sent the necessary documents as directed. They qualified and are one of one million homeowners who have received assistance. They now have an affordable mortgage. The government has made provision to help 7 – 9 million more, including unemployed homeowners in areas that have been the hardest hit in an attempt to get our country back on financial stability.
The Making Home Affordable Program offers four variations to accommodate the varying needs of struggling homeowners.
The Making Home Affordable Modification Program is the one that the couple described above qualified for to make their mortgage more affordable. You may qualify if your income has been reduced, your mortgage payment has increased, you have an increase in expenses such as medical bills, or your mortgage payment is more than 31% of your income.
The Second Lien Modification Program (2MP) makes the second mortgage more affordable after the first mortgage’s payments are reduced under the Making Home Affordable Modification Program.
The Home Affordable Refinance Program allows eligible homeowners presently financed through Fannie Mae or Freddie Mac to refinance to a more affordable mortgage.
The Home Affordable Foreclosure Alternative Program makes it possible for homeowners who can no longer afford to pay their mortgage, even with reduced payments, to avoid foreclosure through a short sale or deed-in-lieu of foreclosure.
The website to visit is www.MakingHomeAffordable.gov where you’ll find detailed information about these programs and free resources including help in determining if you are eligible, help in finding counselors, reduction estimators…all the tools to help you. Your lender will be the one to give you the final determination.
I hope this helps you find the mortgage assistance you need to make your life a little less stressful in your time of need.
It’s not important that you didn’t win the race,
what is important is that you picked yourself up and finished the race.