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Foreclosure Government Programs, Alternatives you need to know

Government Foreclosure Programs. Alternatives to Foreclosure

I have received several calls from homeowners in Harford County looking to avoid foreclosure on their homes. Foreclosures are certainly on the rise in Maryland as we experience a three year moratorium from Banks coming to an end. Lenders are starting to become more aggressive with foreclosure filings. If you are behind on your mortgage and are looking for alternatives. Here is a list of Foreclosure Government Programs. Short Sales will also be on the rise as homeowners realize this alternative may not affect their credit as much. For additional information on these programs and the Short Sale Option, please do not hesitate to contact me. 

Foreclosure Government Programs

The government has created the Home Affordable Foreclosure Alternatives Program (HAFA). Simply put, this program is designed to streamline foreclosure alternatives and provide YOU with real solutions. Government Programs Help Homeowners Avoid Foreclosure There are a number of government-backed options to avoid foreclosure available to homeowners. Below is a list of government programs aimed at helping homeowners, and a description of what the program offers to you.

Home Affordable Foreclosure Alternatives Program (HAFA): If the other programs fail to help you and your mortgage is unaffordable, HAFA is here to help you exit gracefully. HAFA will help to facilitate your short sale or deed in lieu of foreclosure. After the successful closing of either a short sale or a deed in lieu, HAFA will provide $3,000 in relocation assistance to qualified applicants. More Information on the HAFA Program.

Home Affordable Modification Program (HAMP): HAMP is a program that is designed to help homeowners who are in danger of foreclosure for reasons not relating to unemployment. HAMP is designed to lower your mortgage payment to 31% of your monthly gross income (before taxes). Typically, the HAMP program will lower your mortgage payment by roughly 40%. About 15% of HAMP eligible homeowners lower their mortgage payments by 1000 dollars or more each month. Click here to see if you are eligible for the HAMP program. More Information on the HAMP Program.

Home Affordable Refinance Program (HARP): HARP is a program designed to help homeowners who are current on their mortgage payments, but are unable to refinance to a lower interest rate due to a decline in the value of their property. HARP is for homeowners who want to refinance to a more stable and affordable mortgage to avoid foreclosure in the future. Click here to see if you are eligible for the HARP program. More Information on the HARP Program.

Second Lien Modification Program (2MP): If your mortgage was modified under the HAMP program, then any second lien you have on the same property may also be eligible for modification. 2MP is designed to work in conjunction with HAMP, and your mortgage service will automatically determine your eligibility for 2MP. More Information on the 2MP Program.  

Additional Government Programs: FHA Refinance for Borrowers with Negative Equity: This loan option, commonly referred to as the "FHA Short Refinance" is designed to help borrowers with negative equity in their homes to refinance to a low fixed rate. Under the new FHA home loan, the mortgage lender is protected by government-backed insurance, allowing the bank to lend up to 97.5% of your home's current value at no additional risk to the lender. More Information on the FHA Program.

Home Affordable Unemployment Program (UP): If you are having trouble keeping up with your mortgage payments due to unemployment, the UP program can help. The UP Program provides a temporary (3 month) reduction or suspension of your mortgage payment to help the homeowner financially while they seek employment. Click here to see if you are eligible for the UP Program. More Information on the UP Program.

Hardest Hit Fund (HHF): The hardest hit fund, established in early 2010, is a program to help unemployed and underemployed homeowners. Benefits of the HHF vary by state, but the benefits include mortgage payment assistance, principal balance reduction, funding to eliminate second mortgage liens, and grants to help families transition into more affordable housing.

Principal Reduction Alternative (PRA): PRA is a program aimed at helping homeowners who owe significantly more on their home then the property is worth. PRA is designed to encourage investors and lending institutions to reduce the amount that is owed on your home. To Find a Participating Lender. Contact Us!

Robert B. McArtor is a REALTOR with The Nelson Group, LLC. (RE/MAX Components) in Fallston, Maryland and a Licensed Auctioneer.

 

 

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