“Making Homes Affordable” For Homeowners
Throughout this whole recession, people have lost a lot of things. Jobs, businesses, cars, and homes have become victim of this economic downturn. The government has tried to help; some of the results much less desirable than others. One of the groups of people that has gotten the most help has been homeowners; the prevention of foreclosures is beneficial for individuals and the financial institutions that they’re borrowing from.
The Making Homes Affordable Program is the primary program that the Obama administration has put into action in order to help homeowners not fall into bankruptcy and lose everything. The program accomplishes this in three major ways.
- Lowering loan payments. Programs like the Home Affordable Modification Program and the Home Affordable Refinance Program help homeowners who are struggling to get by with their standard monthly payment by lowering their monthly payment to a certain percentage of their income. Also, if you were one of the many who got a second mortgage during the borrowing boom in the 90’s, the Making Homes Affordable program also has a program to help reduce the costs of your second mortgage.
- Helping homeowners who owe more than their home is worth. These are called “underwater mortgages.” No matter what you do, in some cases, your home is going to lose value. In these cases, you can work with programs like the Principal Reduction Alternative to get the total cost of your mortgage reduced.
- Helping the unemployed keep their homes. The programs for the other two ways can assist with this, but there is also a Home Affordable Unemployment program that assists with reducing or postponing payments. The Emergency Homeowners’ Loan Program is also another option that homeowners have to help get some extra cash toward their home.
This program also accounts for people who just can’t get out of their bad situation. The Home Affordable Foreclosure Alternatives is available for those who qualify that want to move into more affordable housing by providing a way for homeowners to bail out before foreclosure occurs. They do this by short selling the home or getting a deed-in-lieu of foreclosure. They also provide a “Redemption” program where, if your home is sold to a bank because of foreclosure, that there is a certain period of time in which you can get your home back.
If you are a homeowner who is struggling with making payments, the programs that the Making Homes Affordable Program provides could be a huge help for you. More information can be found at the Department of Housing and Urban Development website at www.hud.gov. Have a great weekend, and until Monday, spend smart, save smart!
