Mortgage Assistance Programs
As of February of 2010, there were 4 programs that are administered by HUD (Housing and Urban Development) that may help homeowners who are facing foreclosure. These programs have very strict means testing and are contingent upon the acceptance by the lender. These loan modification programs include:
Home Affordable Refinancing - This program is designed for homeowners who are not currently facing foreclosure. This program may help refinance a home that currently has a high interest rate that may be renegotiated.
Home Affordable Modification - This program may help a homeowner who finds that their home is no longer worth as much as they owe. This program may allow the homeowner to modify their current mortgage so that they may afford it. This program may allow a homeowner who is collecting unemployment, disability or other smaller amounts than their job paid to reduce their monthly mortgage payments.
Second Lien Modification Program (2MP) - Homeowners who have a first and second mortgage may be struggling to pay their second and may be facing foreclosure as a result. The 2MP program may help with renegotiation.
Home Affordable Foreclosure Alternatives - This program is used primarily when a homeowner feels that they can no longer afford their home. This program allows money for transition into more affordable housing after agreeing with the lender to a short sale or a deed in lieu of foreclosure.
For the homeowner who is facing foreclosure, the pressing question for them is if they can save their home. The answer is not 100% guaranteed, but there are steps that a homeowner can take to protect their home. Generally, a homeowner should contact an attorney or a qualified financial specialist to determine what is best for their personal circumstances.