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Government Assistance for Mortgage Help

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A homeowner must miss at least two payments to qualify for HAFA.

According to Foreclosure Data Online, one in every 159 homes in the United States received a foreclosure notice during the first three months of 2010. There are several government-backed options that can help struggling homeowners.

  1. Home Affordable Refinance Program

    • The Home Affordable Refinance Program (HARP) is available to mortgage holders whose mortgages are backed by Fannie Mae or Freddie Mac. It reduces the homeowner's interest rate by converting adjustable rate and interest-only mortgages to fixed-rate loans. This program is only eligible to homeowners that are current on their mortgage payments.

    Home Affordable Modification Program

    • The Home Affordable Modification Program (HAMP) helps homeowners who are late on their mortgage payments, who live in the home as a primary residence, and whose mortgages were issued before January 1, 2009. The program reduces the borrower's monthly payment amount so that the mortgage payment does not exceed 31 percent of her monthly income.

    Home Affordable Foreclosure Alternatives Program

    • The Home Affordable Foreclosure Alternatives Program (HAFA) allows the borrower to sell her home for less than what what the mortgage is worth--a short sale--and use the proceeds to satisfy the debt. If the homeowner is unable to sell the home, she can request a deed-in-lieu. This allows her to transfer ownership back to the lender if there are no other outstanding debts on it.

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  • Photo Credit house image by Cora Reed from Fotolia.com

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