| Making Home Affordable is part of President Obama's | | | | Borrowers requesting loan modifications are required |
| Financial Stability Plan. At present, two programs exist | | | | to undergo standard lending procedures and should |
| to help borrowers reduce monthly mortgage | | | | organize financial records prior to contacting their |
| payments. Two additional programs are scheduled to | | | | lender. Homeowners are required to submit a Request |
| launch by the end of April 2010 and include a second | | | | for Modification and Affidavit (RMA) form, IRS 4506-T |
| lien modification program and foreclosure alternatives | | | | tax authorization form and proof of income to their |
| program. | | | | lender. Most mortgage providers also require |
| Making Home Affordable programs are available to | | | | borrowers to submit a loan modification hardship letter. |
| qualified homeowners at no cost. The Home | | | | The Home Affordable Modification Program (HAMP) is |
| Affordable Refinance Program offers homeowners | | | | available to homeowners residing in single family |
| the opportunity to refinance their home mortgage with | | | | homes or residences consisting of up to four units. |
| their current lender. Individuals in need of mortgage | | | | Borrowers can apply for loan modification when their |
| refinance must apply for HARP prior to the June 10, | | | | first mortgage is equal to or less than HAMP limits. |
| 2010 deadline. | | | | Loan modification limits provided at the Making Home |
| The Home Affordable Modification Program grants | | | | Affordable website are: $729,750 for single family |
| borrowers the opportunity to modify their home | | | | houses, $934,200 for a two-unit home, $1,129,250 for |
| mortgage to reduce monthly home loan payments. | | | | three unit home, or $1,403,400 for four unit houses. |
| Under HAMP, lenders must reduce mortgage | | | | HAMP guidelines require mortgage lenders to reduce |
| payments to no more than 31-percent of borrowers' | | | | monthly home loan payments to no more than |
| gross income. Homeowners in need of loan | | | | 31-percent of borrowers' gross income. In order to |
| modifications must apply for HAMP prior to the | | | | reduce monthly mortgage payments, banks |
| December 31, 2012 deadline. | | | | temporarily reduce the rate of interest and extend |
| Eligibility criteria for Making Home Affordable programs | | | | payment terms. |
| is somewhat limiting, especially for borrowers who are | | | | The Home Affordable Refinance Program (HARP) is |
| repeatedly delinquent on loan payments. In order to | | | | available to homeowners holding mortgage notes for |
| qualify for either Home Affordable program, borrowers | | | | residential homes of up to four units. HARP qualification |
| must be current with mortgage payments and cannot | | | | requirements include being current on the mortgage |
| have been more than 30 days late on any home loan | | | | note; having no delinquent payments of more than 30 |
| payment within the previous twelve months. | | | | days during the previous twelve months; and the |
| In order to apply for Making Home Affordable | | | | balance due on the mortgage note cannot exceed |
| programs, homeowners must contact their mortgage | | | | 125-percent of the property's current market value. |
| provider. Lender participation is voluntary; however, all | | | | Borrowers facing foreclosure should contact their |
| mortgage servicing providers offering loans backed or | | | | servicing lender to determine available options and to |
| guaranteed by Fannie Mae and Freddie Mac are | | | | inquire about the upcoming Home Affordable |
| required to participate in Home Affordable programs. | | | | foreclosure alternatives program. |