The Making Home Affordable Program is Obama’s way of helping homeowners avoid foreclosure.  Homeowners that are eligible, can “lower their monthly mortgage payments and get into stable loans at today’s low rates.  And for those homeowners for whom homeownership is no longer affordable or desirable, the program can provide a way out which avoids foreclosure.”

Source:  Avoiding Foreclosure – U.S. Department of Housing and Urban Development.

If you wish to modify or refinance your loan, the HAMP program can:  Lower your monthly payment to 31 percent of  your monthly gross pre-tax income.  “The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment.”

You may also qualify for loan forgiveness or principal reduction for homeowners whose houses are underwater to reduce the amount you owe on your home.

Source:  Avoiding Foreclosure – U.S. Department of Housing and Urban Development

You  may further be eligible for a Second Lien Modification (2MP). If your first mortgage was permanently modified under HAMP and you have a second mortgage on the same property, or a HELOC, 2MP works together with the HAMP on the first,  to provide solutions to make the home affordable.

As of September 2014, Servicers participating in 2MP are:

1. Bank of America, NA
2. BayviewLoan Servicing, LLC
3. CitiMortgage, Inc.
4. Community Credit Union of Florida
5. GMAC Mortgage, LLC
6. Green Tree Servicing LLC
7. iServeResidential Lending, LLC
8. iServeServicing, Inc.
9. J.P.MorganChase Bank, NA
10. NationstarMortgage LLC
11. OneWestBank
12. PennyMacLoan Services, LLC
13. PNC Bank, National Association
14. PNC Mortgage
15. Residential Credit Solutions
16. ServisOne Inc., dbaBSI Financial Services, Inc.
17. Wells Fargo Bank, NA

To be eligible for 2MP you must have a first mortgage modified under HAMP, must not have been convicted of any felony in the last 10 years and must not have missed three consecutive mortgage payments under the HAMP modification of your first loan.

This eligibility criteria is for guidance only.  Additional qualification and approval is required by your lender.

There is also the HARP program for borrowers that are current on their mortgage but unable to obtain a traditional refinance because the property is underwater without no equity.  This program is designed to help refinance and make the mortgage, including interest rate, more stable.

Foreclosure should never be an option when there are so many resources out there to help underwater homeowners.

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