The current government is pursuing administrative programs to greatly help out homeowners who are facing foreclosure. The programs mentioned are aimed to help people who are having difficulty in paying their monthly financial obligations.
The United States Treasury Department and The U.S. Department of Housing and Urban Development or (HUD) are doing their best to assist those who are facing foreclosure. Read on and pick out the best program that will help you in your current situation.
It is advised that to prevent foreclosure, contact your bank first then other lenders like loan service companies to know the prevention processes before this kind of situation hit you. It is important to know your options and have a clear idea of what you will be communicating with your lender to know the best alternatives.
Here are the programs that will best help you out in avoiding foreclosure:
1. Making Home Affordable (MHA) Program
One of Obama’s legacies is to help stabilize the economy, specifically in the housing market. With this end in mind, the (MHA) Program was created to help homeowners who are facing foreclosure by lowering the rate in mortgage payments.
With skyrocketing housing rates today, it is really helpful to have stable loans an ordinary renter of home buyer can afford. This is a great alternative for owners who need a way out in total foreclosure. One of the best options this program can offer is to help out those who are unemployed.
2. Home Affordable Modification Program (HAMP)
Refinancing the loan for payments that have lower rate, the HAMP aims to lower the rate by 31 percent for the monthly gross rent. It can be lowered to 40 percent in monthly payments in some cases.
3. Principal Reduction Alternative (PRA)
This program is specially designed to reduce the amount of home mortgage by negotiating with the banks, loan services, and investors in lowering the rate on what the homeowner owed to these third parties involved.
4. Second Lien Modification Program (2MP)
To grant the Lien Modification Program the second time, the first one must be modified under HAMP SM. The homeowner is eligible for the rate reduction on the second mortgage by the 2MP program. It is important to keep in mind that having equity loan, HELOC or other kinds of second lien or if you are having any financial difficulty must know more about this program.
5. Home Affordable Refinance Program (HARP)
If traditional refinancing is not helping you out in your mortgage payments due to the decline in the value of your property, this program will help you find better financing. This program is especially designed for mortgages that are more stable and affordable.