Distressed Homeowners Have Options

If you are having trouble making your house payments and are worried about losing it to foreclosure, don't despair.  Distressed homeowners have options.  Luckily, there are some programs out there for those homeowners in danger of losing their homes.  Here are a few possibilities that you may want to look into:

Home Affordable Foreclosure Alternatives Program (HAFA) - This government program gives incentives to both lenders and homeowners to try selling the home in a short sale or deed-in-lieu of foreclosure rather than a foreclosure.  Currently under this program, homeowners receive $3000 for completing a short sale or deed-in-lieu of foreclosure successfully.

Home Affordable Modification Program (HAMP) - This is a loan modification program for those homeowners who believe that they would be able to continue paying the mortgage on their homes if the interest rate was lowered, setting the mortgage payment at a much more affordable level.  This is great for those homeowners who have found that their mortgage payments are just outside their budget.

Second Lien Modification Program (2MP) - Just like it says, this program is for those homeowners who have a second mortgage that they are having trouble keeping up on.  2MP is meant to work in conjunction with the HAMP program, meaning that homeowners must have modified their first mortgage through the HAMP program before attempting to modify their second mortgage under 2MP.

Home Affordable Refinance Program (HARP) - Under this program, homeowners may be able to refinance their home, even if they were unable to get a lower interest rate before due to their home value being lower than what is owed as long as they are up to date on their current mortgage payments.

Along with these government programs, there are other alternatives that struggling homeowners may have.  These include selling their home and bringing cash to the closing, a lender workout and a mortgage loan workout option.  You definitely want to consult with your tax or finance professional or your real estate professional to see which option would work best for you.  If you are a distressed homeowner, you have options.  Contact me today to see what options work best for you.