Find Foreclosure Relief with a Mortgage Loan Modification

If you are struggling to pay your monthly mortgage dues and the shadow of foreclosure looms, you may take the benefit of one of the various loan modification options. The U.S. Treasury Department and HUD act as administrators of majority of these programs.

Making Home Affordable (MHA)

The Making Home Affordable (MHA) program aims at foreclosure avoidance, stabilization of the housing market and positively impacting the nation’s economy. It helps the homeowners to get into more stable loans with lower interest rates and decrease their mortgage payments. See a loan modification consultant to enrol into one of the following programmes.

Modify or Refinance Your Loan for Lower Payments

  • Home Affordable Modification Program (HAMP): It helps lower your monthly mortgage payment to 31 percent of monthly gross (pre-tax) income, resulting in a 40 percent decrease.
  • Principal Reduction Alternative (PRA): It encourages investors and servicers to reduce the amount owed by a homeowner whose homes are worth less than their mortgage.
  • Second Lien Modification Program (2MP): If an owner has two mortgages on the same property, a modification is possible on both under HAMP SM and 2MP.
  • Home Affordable Refinance Program (HARP): It helps refinance the mortgage to make it more affordable and stable if the value of a homeowner has declined and he was unable to obtain a traditional refinance.

“Underwater” Mortgages

These programs are for owners whose home values have significantly decreased.

  • Home Affordable Refinance Program (HARP): It helps refinance the mortgage into a more affordable and stable one if the value of a homeowner has declined and he was unable to obtain a traditional refinance.
  • Principal Reduction Alternative (PRA): It encourages investors and servicers to reduce the amount owed by a homeowner whose homes are worth less than their mortgage.
  • Treasury/FHA Second Lien Program (FHA2LP): It reduces or eliminates the second mortgage on the home if the second mortgage’s service agrees to participate and reduce the net mortgage debt to 115% of the home’s current value.

Assistance for Unemployed Homeowners

  • Home Affordable Unemployment Program (UP): If you are unemployed, it temporarily reduces or suspends mortgage payments for at least a year while you find a job.
  • FHA Special Forbearance: If you have no source of income and do not qualify for the program, FHA requires servicers to extend the forbearance periodand, it reduces or suspends the mortgage payment for a year.

Managed Exit for Borrowers

  • Home Affordable Foreclosure Alternatives (HAFA): Under HAFA SM, you may be eligible for a short-sale or deed-in-lieu of foreclosure if your mortgage payment is unaffordable.

To know more about the various loan modification options available for you, consult a loan modification professional today.