It is no secret that the housing market in recent years fell into a crisis. This is nothing new. And while home values slowly begin to increase and less homeowners are finding themselves with underwater mortgages, the market is still being flooded with foreclosures. This continues to plague the housing market, which is vital to the nation and the economy. So what is the government doing to offset this?
When President Obama was elected into office, he made several proposals to help relieve the strain on the housing market. Two of these are the Home Affordable Modification Program and the Home Affordable Refinance Program. How do these work?
The Home Affordable Modification Program or HAMP aids current homeowners in lowering their monthly mortgage payments while the Home Affordable Refinance Program or HARP allows homeowners who are current on their mortgage payments but may have been denied refinancing of their mortgage based on the drop of the home value to refinance through HARP.
Other programs that are available include:
Principal Reduction Alternative or PRA
The program works to lower monthly payments by working with lenders to reduce the principal based on the significantly lower home value.
Loans guaranteed by the government given to veterans of the U.S. Armed Forces for the purchase of a home. This loan may also be available to spouses of deceased veterans in certain circumstances.
Home Affordable Unemployment Program or UP
This program allows those that are unemployed and struggling to make mortgage payments to receive a temporary deduction or a suspension of payment for up to twelve months while they seek re-employment.
Home Affordable Foreclosure Alternatives or HAFA
Rather than foreclose on the home and clog up the market any further, this program allows incentives for homeowners to opt for a short sale or deed-in-lieu of foreclosure.
Stephen K. Hachey, a Florida real estate attorney, can help you navigate this process and make the most of a difficult situation. Contact him at 813-549-0096.