The Making Home Affordable Program is a part of the U.S. Government’s Financial Stability Plan to address key issues hurting the United States economy. Since the national housing market plays a critical role in getting the economy back on track, The Making Home Affordable Program is designed to help stabilize the housing market and help struggling homeowners get relief by avoiding foreclosure. The plan includes several solutions for homeowners currently in financial trouble and behind on their mortgage. Making Home Affordable offers a variety of programs. Below we discuss 3 popular programs for Homeowners.
What is HARP. HAMP, and HAFA?
- H.A.R.P. = Home Affordable Refinance Program
- H.A.M.P. = Home Affordable Modification Program
- H.A.F.A. = Home Affordable Foreclosure Alternatives
Home Affordable Refinance Program (HARP)
This program applies to homeowners with loans currently owned and guaranteed by Fannie Mae or Freddie Mac. HARP could give you an opportunity to refinance your current mortgage into an affordable monthly payment and take advantage of lower interest rates. This program offers a refinance option if you are current on your mortgage, but unable to refinance to a lower interest rate because the value of your home has decreased. Only loans owned or guaranteed by Fannie Mae or Freddie Mac are eligible for this refinance program.
Home Affordable Modification Program (HAMP)
This program gives homeowners who can no longer make monthly loan payments the opportunity to modify their mortgage in an effort to make their payment more affordable. Since HAMP’s inception, the program has helped millions of homeowners, but it has had mixed results. In most cases those who seek professional help or aggressively do whatever it takes can save their home. HAMP takes aim at homeowners who are current, but having trouble making their payments and those who have missed mortgage payments. When applying for HAMP, be sure to follow all instruction and meet all deadlines outlined by your lender. Be sure to provide proof of income and bank statements each month. Scheduling frequent updates with your lender is imperative. For more information about HAMP, watch this video.
Home Affordable Foreclosure Alternatives (HAFA)
This program applies to homeowners who cannot afford to stay in their home. HAFA provides a viable option if you can’t modify or refinance your current mortgage. Through HAFA, you may avoid the negative effects of a foreclosure through a short sale or deed in lieu of foreclosure. In addition to getting help with up to $3000 relocation assistance.
This program was specifically designed to simplify and streamline the use of foreclosure alternatives and offers incentives to lenders for completing a short sale or deed in lieu of foreclosure. These two foreclosure alternatives may allow you to leave your home and transition to more affordable housing and eliminate the mortgage debt you currently owe without future liability.
Are You Eligible?
To find out if you are eligible for Making Home Affordable, please use the online self-assessment tool.
What Some Say About Making Home Affordable
Part 1 and Part 2 discusses the Making Home Affordable Program and why some feel HAMP is designed to help the banks more than struggling Homeowners. Find out for yourself! Talk to friends, neighbors, and those who have participated in the program. What was there experience…did they get a Loan Modification?
