So you spent your life planning, working, loving and living. Doing the things you love. Building the memories with your family. All the while, your house became a home. Probably one of the first things that you ever purchased while entering into your adult life. And maybe you didn’t even realize at the time just how significant that purchase would be. Sure, it was a big purchase, a big financial decision. But it is so much more than that now. A home is where important life memories are made, where family and friends can gather, and where you can enjoy a sense of safety and comfort.
Life is pretty great right? You have a good job, you have a home, and things are sunny. Until disaster strikes. No one wants to think about it, but it can happen to anyone. Yes, I am talking about the nauseating word, foreclosure. Although, you thought you had it all together, and you probably did, anything can happen. Job layoffs, illness, injury. So many variables. If this has happened to you or someone you love, you are probably feeling like you do not know where to turn and feeling utterly alone. But that simply should not be the case at all. There is help out there.
Making Home Affordable is a free government resource that can help make paying that mortgage easier. Help from MHA provides incentives and flexibility that you might not have otherwise.
The program can help you identify your situation, explore program options, prepare what you will need to move forward and apply for the right solution based on your individual circumstance. Help from MHA provides incentives and flexibility that you might not have otherwise.
Take Thomas for example. When Thomas first bought his home, he felt like he achieved a real milestone in his life. He was starting to accrue wealth and felt like he had a place of his own that he could pour himself into. But then, in 2007, he was unexpectedly laid off from his job. There came a point where he knew he needed help, and the Making Home Affordable program is where he turned to save his home.
If you’re struggling to pay your mortgage, keep the following tips in mind:
- Beware of anyone seeking to charge you in advance for mortgage modification services. In most cases, charging fees in advance of a mortgage modification is illegal.
- Only your mortgage company has the discretion to grant a loan modification. Therefore, no third party can guarantee or pre-approve your Home Affordable Modification Program (HAMP®) mortgage modification application.
- Paying a third party to assist with your application may not improve your likelihood of receiving a mortgage modification. Beware of individuals or companies that ask you for payment, tout their success rate, or claim to be Making Home Affordable (MHA) HAMP experts.
- Beware of individuals or companies that offer money-back guarantees.
- Beware of individuals or companies that advise you to stop making your mortgage payments or discontinue contact with your mortgage company.
- Do not sign over the deed to your property to any individual or organization unless you are working directly with your mortgage company to forgive your debt.
Going through the stress of potentially losing your home is hard enough as it is. No one should EVER be faced with going through that alone, but many do feel alone in what they are experiencing. That is why the Making Home Affordable (MHA) program provides free resources and assistance for distressed homeowners who are working hard at juggling expenses to makes ends meet. There are more options available for struggling homeowners today than ever before, and MHA works to provide them with the mortgage solution that is right for them.
Visit MakingHomeAffordable.gov to read about available programs to help with mortgage payments. If you or someone you know is struggling, there is help.
Hardest Hit Fund (HHF)– HHF programs in 18 states and the District of Columbia are designed to provide assistance to struggling homeowners through modification, mortgage payment assistance, and transition assistance programs. HHF programs vary state to state, but often include:
- Mortgage payment assistance for unemployed or underemployed homeowners
- Principal reduction to help homeowners get into more affordable mortgages
- Funding to eliminate homeowners’ second lien loans
- Help for homeowners who are transitioning out of their homes and into more affordable places of residence
Home Affordable Modification Program (HAMP) – HAMP® is designed to lower your monthly mortgage payments, making them more affordable and sustainable for the long-term.
- HAMP achieves a more affordable payment by adjusting your interest rate, extending your term, and reducing or forbearing your principal.
- HAMP homeowners typically save about $500 per month.
- Through HAMP, you can get help with your primary residence or rental property.
- If you owe significantly more than your home is worth (>115 Loan-To-Value), you’re automatically evaluated for principal reduction.
- Just for making timely payments, you could earn up to $10,000, which would be used to reduce your principal balance.
Making Home Affordable can help homeowners:
- Identify the situation – MHA has a solution that can fit your needs, you just have to figure out which one best describes you.
- Explore program options – There are several program options to choose from to help you get the best support and avoid foreclosure.
- Prepare what will be needed – a comprehensive list of the documents required to support your application.
- Apply for the right solution – The sooner you apply, the sooner you can get help!
If you or someone you love is feeling helpless and on the verge of losing their home, do not tackle it alone, there is help available. Don’t wait until foreclosure is at your doorstep to reach out. Visit MakingHomeAffordable.gov or call 888-995-HOPE today to see if Making Home Affordable can help! Housing counseling are available around-the-clock at no cost. They are there to help in figuring out the options, design a plan to suit the individual situation and prepare the application.