Making Home Affordable Program

Making Home Affordable Program

President Obama’s Making Home Affordable Program produced the Home Affordable Modification Program (HAMP) which offers many loan mortgage modification programs that help consumers to keep their homes. This ensures that they are able to continue to make their mortgage payments on time. The economy has been the driving force behind higher than average numbers of foreclosures. The government has offered HAMP under their Making Home Affordable initiative to be able to step in and give a helping hand to those in need at this time.

Why is this Making Home Affordable Program offered?

Under the direction of the Obama Administration, the Making Home Affordable program began in February of 2009. The goal was to reduce the impact of the negative economy on those that are buying their homes. This program was designed to reduce the number of homes that would end up in foreclosure. The plan of action was designed to be able to help stabilize the housing market.

The Treasury Department further included guidelines in March of 2009. The reason for this was to offer some industry standards to help lenders to be able to offer homeowners the best possible solutions to their problems with paying their mortgages. This is a consolidated resource that anyone can turn to. This program also helps to reduce the risk of anyone falling victim to scams for refinancing or avoiding foreclosure.

Information on HAMP is key

No one wants to see their home go into foreclosure, but it is a reality out there due to the economy for many households. Getting them solid information about HAMP loan mortgage modifications can help them to make their home more affordable. When they first got their loan, they may have had it all under control. Yet the economy has resulted in higher fuel costs, food costs more, and everything else that seems to be a basic necessity.

At the same time, many people have lost their jobs, they have had to get other employment that doesn’t pay as well, or their hours have been cut so that it is very hard for them to make ends meet. The loan mortgage modifications programs offered through HAMP helps by lowering interest rates, payments and sometimes even your mortgage principal. They also have programs that help with refinancing, second mortgages, and even with homes that are now valued at far less than what they owe on them.

Do I need to be behind for a Making Home Affordable Program loan mortgage modification?

For many of the HAMP loan mortgage modification programs, you need to be behind on your house payments. It can be as early as one missed payment though. You will need to show that you are at risk of not being able to keep up with the payments. If you are already behind more than one payment, you need to take action now. Don’t wait until your home is in jeopardy of being foreclosed on before you do something.

There are some HAMP programs though that help to reduce the amount that is due on the home. In such cases, you have to be current on your mortgage. Yet there are circumstances such as the market value on your home decreasing so much that you now owe more on the home than it is worth. To simply sum it up, there are programs for people both current on their mortgage and those that are behind.

One element that is in place for all of the HAMP mortgage modifications programs is that the loan on the property must be assumed before January 1st of 2009. Any mortgage that is after that date won’t qualify for any of the programs. Another requirement of all of their programs is that you must reside in that home (owner occupied homes only).

HAMP loan mortgage modifications Exit Offer

One of the HAMP programs that many people don’t know about is the ‘exit gracefully opportunity’. It’s called the Home Affordable Foreclosure Alternatives (HAFA) Program. This is for those people that don’t want to hold onto their home. Their income may have changed so much that they don’t want to try to keep it. They may need to relocate for work so they can’t stay in it. Regardless of the reasons, this can be an option that prevents foreclosure.

It includes a faster means of selling the home. However, the biggest difference with this and foreclosure is that the lender can’t pursue you to get the remainder of the money. With a foreclosure, they can pursue you to get the difference between what the home sold for and the debt you owe them. With that in mind, you can lose your home and still not get out from under the debt of it with the ‘exit gracefully opportunity’ .

The exit gracefully option allows you to completely get out from under the debt of your home. They can also offer some funds in many circumstances that assist with relocating. The maximum amount of money offer with that option is $3,000. The amount someone is eligible for depends on where they will be relocating and the expenses to get into a new place to live.

Find out if you qualify for a HAMP loan mortgage modification program

While there are some general guidelines for qualification offered with the HAMP loan mortgage modification programs, there are also many variables that play a role in all of it. You should talk to your lender first to see what options you have. They already can see your loan and where you are with making payments. If your lender doesn’t work with HAMP don’t worry. You can still talk to a counselor with the program. There is no charge for the assistance that they offer to you. HOPE is a good first choice on a counceling agency.  Call 1-888-995-HOPE (4673).

They can help you to find another lender that may be a better fit for your needs. For example, you may be able to get a refinance of your current loan with one of the lenders that is part of the HAMP programs. Don’t allow an opportunity to reduce your monthly payments and to increase equity to slip through your fingers. Take the initiative to find out what you may qualify for and how you apply.

 

Making Home Affordable Program lowers payments

There are many paths to saving your home if that is what you wish to do. However, you can’t do it alone when it is so tough out there with the economy. Home Affordable Modification Program mortgage modifications can make it possible for you to find a way to fit the cost of your home into your monthly budget.