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'MAKING HOME AFFORDABLE' LOAN MODIFICATION PROGRAM

THE PROGRAM

The Obama Administration has introduced a comprehensive Financial Stability Plan to address the key problems at the heart of the current crisis and get our economy back on track. A critical piece of that effort is Making Home Affordable, a plan to stabilize our housing market and help up to 7 to 9 million Americans reduce their monthly mortgage payments to more affordable levels.

The Home Affordable Refinance Program gives up to 4 to 5 million homeowners with loans owned or guaranteed by Fannie Mae or Freddie Mac an opportunity to refinance into more affordable monthly payments. The Home Affordable Modification Program commits $75 billion to keep up to 3 to 4 million Americans in their homes by preventing avoidable foreclosures.

THE PROBLEM

Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home. Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income.

THE SOLUTION

The program is focused on two solutions for troubled homeowners, refinancing and loan modification. These programs are handled through your existing home mortage lender. The loan modification program requires completing the Hardship Affidavit that describes the circumstances that caused your income to be reduced or your expenses to be increased.

ARE YOU ELIGIBLE?

Learn About Making Home Affordable, use the Payment Reduction Estimator and check the eligibility requirements for these programs by visiting the federal Making Home Affordable government website.