A number of programs to assist at risk homeowners has been implemented by the Obama Administration. Homeowners that are in jeopardy of losing their home or are struggling to make their monthly mortgage payment now have some options that may save their home from being foreclosed on.
The Making Home Affordable Program (MHA) helps homeowners avoid foreclosure as well improve the nation’s economy by stabilizing the housing market. Under this program you are able to modify or refinance your loan for lower payments. Some options within this program include, Home Affordable Modification Program (HAMP), Principal Reduction Alternative (PRA), Second Lien Modification Program (2MP) and Home Affordable Refinance Program (HARP).
For those that have experienced a decrease in their home’s value, the following MHA programs can help address concerns the homeowner may have.
As mentioned above, the Home Affordable Refinance Program or HARP allows you to refinance your home through HARP as long as you are current on your mortgage and if you have not been able to obtain a traditional refinance due to the fact that the value on your home has declined.
The Principle Reduction Alternative (PRA) was created to assist those who own homes that are worth significantly less than they owe. PRA encourages investors to lower the amount of money you owe on your home.
Treasury/FHA Second Lien Program is for those who have a second mortgage and the initial lender agrees to be part of an FHA Short Refinance. This will allow you to have your second mortgage lowered or perhaps eliminated through FHA2LP.