Making Home Affordable Program
Types of Loan Modification Programs
MHA features several types of home ownership programs. Knowing which program applies to you or is best for your situation is very important. Although your loan servicing company or lender should help you assess your options, not all do. The burden is on you to apply for the best program. There are three categories of programs under the Making Home Affordable Obama Plan. Within each of these three categories, there are different types of programs. In other words, you’ll need to find which program within each category is best for you. An important thing to note is that the plans will end soon.
Faced With Unemployment
You’re not alone, and although you may feel singled out, know that thousands of other Americans are going through this or have been through job loss. The Home Affordable Unemployment Program (UP) can help you lower your mortgage payments or suspend them, at least temporarily.
Reducing Your Interest Rate
If your home’s value has fallen, and you’re not eligible to refinance your home may be eligible for the Home Affordable Refinance Program (HARP) or FHA Refinance for Borrowers with Negative Equity (FHA Short Refinance).
If you took out more than one loan, and paying both lenders or both loans becomes financially impossible or very difficult, you may be eligible for the Second Lien Modification Program (2MP).
Consider the Other Alternatives: Short Sales and Foreclosures
Although it may not be your first option, sometimes proceeding with a short sale or foreclosure is the best option. The reality is that although you may have been able to afford your mortgage payments in the past, unemployment, job changes, rising interest rates or changes in your personal situation may prohibit your from doing so now. Whatever you decide, remember that some changes are only temporary. With careful financial planning and legal help, you may be able to buy another house in the not-so-distant future.
Legal Help: If you’re looking for a Virginia real estate attorney to help you with your loan modification or to help you understand your options, contact Keithley Law, PLLC today by calling (703) 454-5147 and schedule an initial consultation in our Fairfax law office.
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