With so many people experiencing difficulties paying their mortgage, President Obama’s Making Home Affordable program is bringing much-needed relief to homeowners around the country. The program offers options to help those who cannot afford to pay their mortgage, as well as those who would like to take an alternative route to selling, such as conducting a short sale.
The Making Home Affordable program that President Obama has put into action offers a variety of solutions and tools that people can choose from, depending on their needs. Homeowners can consider the following options in this program:
Home Affordable Refinancing – This helps the homeowner to refinance their mortgage, so that they will get a more affordable rate and be able to keep their home. This is especially helpful for those who pay their mortgage on time, but have been unable to refinance because of the decrease in the value of their home.
Home Affordable Modification – This is an option for those who may be struggling to pay their mortgage due to a loss of income or an increase in their mortgage payment. This is even open to those who are current on their mortgage, but are struggling financially.
Second Lien Modification Program – This is a helpful route for those who are struggling to pay their mortgage because of a second lien they have on the home. This program will help lower the payment rate on the second lien, making it easier for people to pay on the first mortgage.
Home Affordable Foreclosures Alternatives – This is a program that is designed to help people transition to more affordable housing. The program provides them with $3,000 to assist in the transition and is open to those who complete a short sales or deed-in-lieu of foreclosure.
In addition to the Making Homes Affordable Program, there are many banks that are working with homeowners to help find solutions. While some may help with refinancing, others are allowing the homeowners to live in the house until a set time, when the home deed must be turned over.