Through the Making Home Affordable (MHA) program, the U.S. Department of Housing and Urban Development (HUD) offer homeowners several foreclosure alternatives that can help lower their monthly mortgage payments and access more stable loans at competitive rates. For those homeowners for whom homeownership is no longer affordable or desirable, the program can provide a way out which avoids foreclosure. Additionally, in an effort to be responsive to the needs of today’s homeowners, there are also options for unemployed homeowners and homeowners who owe more than their homes are worth. While some of the programs of MHA are under regulation and no longer take applicants, the following programs are currently available:
Principal Reduction Alternative (PRA): This program was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home.
Second Lien Modification Program (2MP): This program enables borrowers struggling with their mortgage to lower payments on second mortgages.
Home Affordable Unemployment Program (UP): This program provides servicers with the flexibility to provide assistance to borrowers whose hardship is related to unemployment and is a supplemental program to HAMP.
FHA Special Forbearance: For qualifying Federal Housing Agency (FHA) borrowers, FHA now requires servicers to extend the forbearance period, by offering a reduced or suspended mortgage payment for up to twelve months.