The Making Home Affordable program was a part of the Troubled Asset Relief Program, which was started by the United States Treasury in 2009. During the program, the main activity is the Home Affordable Modification Program, which allows homeowners to get the help they need to avoid foreclosure.
Hope for Homeowners
Hope for Homeowners is a program that was developed to help distressed homeowners avoid foreclosure. The program provided homeowners with affordable fixed-rate mortgages.
Hope for Homeowners is a government-backed mortgage program. It was created during the sub-prime mortgage crisis. Borrowers who were at risk of defaulting on their mortgages were encouraged to call their lenders for an evaluation. They could also get assistance from private lenders.
The program allows qualifying borrowers to refinance into affordable FHA-insured mortgages. Foreclosure is a devastating event for homeowners. However, under the Hope for Homeowners program, a borrower’s loan will be refinanced into an affordable, 30-year fixed rate mortgage. In addition, a homeowner will receive an equity share.
If a lender is working with a borrower who is having difficulty paying their mortgage, they may recommend that the borrower apply for the Hope for Homeowners program. A loan officer can assist the borrower in completing the application process.
There are a few requirements for the program. For one, the home must be the primary residence. Secondly, the homeowner must make at least six payments. Finally, the front-end DTI ratio must be 31 percent or less. This is similar to the requirements of the HAMP pay-for-success program.
HOPE for Homeowners requires that the borrower is able to make the monthly mortgage payment and not fall behind on other bills. Additionally, the borrower must have fully documented income and employment.
In addition to the requirements, a borrower is not eligible for the Hope for Homeowners program if they have other home loans. Another requirement of the program is that the home must be the owner’s primary residence.
While the Hope for Homeowners program will not be available after September 30, 2011, a borrower will still be able to refinance into an affordable FHA-insured mortgage. But only if the servicer provides the option to do so.
This is a great time to consider the latest Freddie Mac Home Affordable Modification program (HAPM) in your search for the best mortgage loan. The HAPM has a lot to offer including a robust foreclosure prevention solution and the aforementioned aforementioned mortgage remodifications. Freddie Mac is proud to be a key player in the new era of homeownership. Whether you are interested in a conventional or FHA mortgage, you can count on the HFPM to deliver the best in class service. During the past year, Freddie Mac has refinanced over a thousand loans worth over $3 billion. Freddie Mac is excited to offer a solution for the many homeowners who have been hit with the mortgage bug. If you are interested in finding out more about HFPM, please visit Freddie Mac’s home page today. We are here to help you find the best home loan for you and your family.
The Home Affordable Refinancing Program (HARP) is designed to help struggling homeowners avoid foreclosure. HARP allows borrowers to refinance their mortgages, potentially reducing their interest rate and monthly payments. This is part of the Making Home Affordable program, which was developed by the Obama administration in the wake of the Great Recession.
There are many types of HARP loans, including refinancing, interest-only loans and balloon payments. In addition, the program includes a slew of programs to help borrowers with little or no equity.
While the most expensive HARP loan is out of reach for many home owners, there are programs to help homeowners with minimal to no equity. Some of these programs include 97% LTV refinancing from Fannie and Freddie, Interest Rate Reduction Refinancing Loans and Streamline Refinancing from the USDA.
Another program to help in this area is the HOPE for Homeowners Program. Using Art Exploration and CoreLogic data, this program helps homeowners make better informed decisions about their homes. These programs are just a few of the programs being offered by the federal government in an effort to improve the economy.
While the Home Affordable Refinancing Program was the harbinger of the housing market, there are other programs designed to assist in the same way. The HOPE for Homeowners program, for example, uses a clever combination of Art Exploration and CoreLogic data to help borrowers make better decisions about their homes.
Despite these enticements, some homeowners still find themselves underwater. For homeowners in this position, refinancing may be the only way out. With a number of loan programs available to assist in this endeavor, it’s important to choose the right lender. Before making a final decision, be sure to consider the financial and personal circumstances of each prospective borrower.
Expansion to second lien mortgages
Homeowners struggling with foreclosure are able to obtain loan modifications through the Home Affordable Modification Program (HAMP). The program is designed to help financially struggling borrowers to avoid foreclosure and transition to a more affordable living situation. It offers incentives and clear and consistent loan modification guidelines for homeowners.
In June 2012, the HAMP program expanded to include non-GSE loans. The program also expanded to a wider range of properties. This includes vacant properties and properties with tenants.
Second lien mortgages are typically home equity loans. Currently, the four largest banks hold about 80 percent of all second liens. As a result, servicers are evaluating second liens to see if they are eligible for a modification.
Second lien holders can expect incentive payments from the Treasury Department. They will receive a 2 percent discount on the interest rate of the modified loan. Additionally, servicers will be paid up front $500 for successful modifications. These incentive payments will not be given to a servicer who does not participate in the program.
Servicers must keep the first lien modified and ensure that the modified first lien remains current. However, the servicer can enter new trial modifications at any time. If the property is sold, the second lien may be paid by scheduled payments or by a payoff.
There are approximately 136,000 active second lien modifications under the Second Lien Modification Program. Approximately 24,000 are waiting for homeowner responses.
Homeowners can save a median of $154 a month on their second mortgage. When combining first and second lien payments, the median reduction is $784. Combined, the savings are 53% of the before-modification payment.
According to a Treasury fact sheet, the modified second lien interest-only loan will begin amortization at the end of the modified first lien mortgage’s original scheduled amortization term. Borrowers will be eligible for pay-for-success payments similar to those under the HAMP program.
Frequently Asked Questions
The aforementioned Home Affordable Modification Program is a nod to the federal government’s efforts to stimulate the housing market. This program offers a number of mortgage relief options to homeowners that have fallen on hard times. Among these are loan modifications, loan extensions, and deferred payment options. You can find out more about these and other programs by visiting the HUD website.
As you can imagine, there are a few things you need to know before you can take advantage of the aforementioned program. The most important is that you must meet certain criteria to qualify. So, how do you find out if you qualify?
First, you need to make a list of all your outstanding loans. Next, you need to figure out your eligibility, as well as the requirements for your specific loan. Once you have a clear picture of your financial situation, you can begin the process of obtaining mortgage relief.
Lastly, you need to have a solid grasp on the various available loan modification programs. While you are at it, you should also research the best lenders in your area, as these lenders are likely to have more expertise than others. Fortunately, there are several resources to help you locate the lender that is best for you.
Having a good grasp on the various loan modification programs available will save you from an expensive, or even painful, foreclosure. To be on the safe side, try to make your application a top priority. A lender may take a while to approve your request, so be patient. It will be worth the wait!
Getting mortgage assistance is no small feat, but with the right tools, you should be able to enjoy the fruits of your labor.