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What is Making Home Affordable?
In 2009 a program called Making Home Affordable (MHA) was launched as part of the Troubled Asset Relief Program, which is the federal government’s response to the subprime mortgage crisis.
The eligible homeowners were aided by lowering their monthly mortgage payments to a more manageable level by MHA.
With the intention of stabilizing the housing market and preventing foreclosures, the program of making homes affordable was designed.
Either through refinancing or modification of the existing mortgage, the reduction in payments may be accomplished. $75 billion allocated to the program by the administration of President Barack Obama.
History of Making Home Affordable Program
In early 2009 the U.S. Department of the Treasury launched this MHA program as a way to assist struggling homeowners to avoid foreclosure.
Treasury officials explain that since its formation, MHA has helped homeowners who with a variety of solutions to modify or refinance their mortgages were able to avoid foreclosure, get temporary forbearance if they are unemployed, or transition out of homeownership thru a short sale or deed in lieu of foreclosure because of the help provided by MHA.
MHA’s Home Affordable Modification Program (HAMP) is a core program that gives eligible homeowners a chance to lower their monthly mortgage payments.
To help homeowners who are unemployed, and in bad shape on their loan, who are owing more on their home than its current worth, or those struggling with a second lien, the Treasury Department had launched other programs under MHA.
Making home Affordable Programs
There are many additional programs like the Principal Reduction Alternative (PRA), which was aimed at homeowners with a loan-to-value ratio of more than 115 percent, for homeowners who were unemployed the Home Affordable Unemployment Program (UP), was designed to give “temporary forbearance”; the Second Lien Modification Program (2MP), which allowed servicers to modify second liens when a homeowner receives a first lien modification through HAMP, and with the aim of helping homeowners “exit their homes and transition to a more affordable living situation through a short sale or deed-in-lieu of foreclosure the Home Affordable Foreclosure Alternatives Program (HAFA) was created.
In 2014, The deadline for MHA applications was extended by Obama Administration until the end of 2016.
Even if the MHA program has expired, the Treasury Department encourages homeowners to contact their mortgage company directly to inquire about available solutions.
Ongoing Services of Making Home Affordable
The MHA program set new standards and has transformed the mortgage industry, the Treasury Department noted that more than 1.8 million families were helped directly through HAMP.
From October 2013 the MHA resulted in more than 3.9 million private-sector mortgage modifications. more than 7 million Americans helped to get mortgage assistance to prevent avoidable foreclosures because of public and private efforts.
makinghomeaffordable.com is a website maintained by the MHA program they also have a hotline at 888-995-HOPE to help families learn about their options for mortgage help.
The website offers FAQs and glossaries, and advice on finding a housing counselor, applying for mortgage assistance, dealing with mortgage companies, avoiding scams, and more.
Counselors are made available by phone to assist people to understand their options, design a plan to suit an individual situation, and prepare the application.
Homeowners who are already in a HAMP modification are given a series of resources to help them understand the terms of their modifications, get incentives for timely payments and manage their payments.
Conclusion
MHA is an official program of the U.S. Department of the Treasury and the U.S. Department of Housing and Urban Development.
Designed with an intention of foreclosure prevention, the programs guide homeowners facing mortgage trouble to learn about free foreclosure prevention assistance.
