Who Qualifies for Mortgage Rescue Plan Assistance?

Government assistance may help you save your home.

Known as the Making Home Affordable initiative, President Obama's mortgage rescue plan aims to help homeowners who are facing financial difficulties and have problems meeting their debt obligations. Homeowners need to meet certain criteria to qualify for the program. Your lender or a housing counselor can help you determine whether you are eligible for it.

Home Affordable Modification Program (HAMP)

If you can't afford your mortgage payments on time due to increased interest rates or lower incomes, HAMP can help you by reducing your monthly payments to 31 percent of your gross income. To qualify for HAMP, you have to have a mortgage on a one- to four-unit property that is your primary residence. You must have received your mortgage on or before Jan. 1, 2009 and your current mortgage payment must be more than 31 percent of your gross monthly income.

Home Affordable Refinance Program (HARP)

HARP is suitable for you if you have a healthy mortgage on which you make prompt payments, but you can't refinance to take advantage of prevailing low interest rates. To qualify for HARP, you have to own a one- to four-unit property as a primary residence, for which you have a healthy mortgage that is owned or guaranteed by Fannie Mae or Freddie Mac. You must not have been more than 30 days late in making a mortgage payment within the past 12 months.

Home Affordable Foreclosure Alternatives Program (HAFA)

If you can't afford your mortgage and want to give up your home in exchange for freedom from the loan, a HAFA may help you by providing up to $3,000 for relocation and up to $6,000 for lien releases. To qualify for HAFA, you must not qualify for HAMP and request a short sale or deed in lieu of foreclosure. With a short sale, the lender sells your home and take the sale proceeds. With a deed in lieu of foreclosure, you give ownership to your lender without going through a foreclosure.

More Help

The Second Lien Modification Program (2MP) may lower the payments on your second mortgage if your first mortgage qualifies for HAMP and your second mortgage provider participates in 2MP. Unemployment Program may help you if you can't make mortgage payments due to unemployment. If your lender participates in the Making Home Affordable Program, it would reduce or suspend your payments while you seek employment.

References

• Making Home Affordable: Help for America's Homeowners
• Los Angeles County Department of Consumer Affairs: The Mission of Federal Program: Making Home Affordable