| In 2009, President Obama implemented Making Home | | | | proof of income. Most banks also require borrowers to |
| Affordable programs to help borrowers struggling to | | | | submit a loan modification hardship letter which outlines |
| meet mortgage obligations. Presently, two programs | | | | events causing financial hardships. |
| offer financial relief through loan modification and | | | | HAMP is available to borrowers who reside in single |
| mortgage refinance. Two additional programs will be | | | | family homes or houses consisting of up to four units. |
| added by April 30, 2010 and include foreclosure | | | | Homeowners can apply for a home loan modification if |
| alternatives and second lien modification programs. | | | | the balance due on their first mortgage is equal to or |
| Qualified homeowners can apply for Making Home | | | | less than HAMP limits. |
| Affordable programs through their servicing mortgage | | | | Home Affordable modification limits are: $729,750 for |
| lender at no-cost. Borrowers who desire a loan | | | | single family residences, $934,200 for two-unit homes, |
| modification must apply for the Home Affordable | | | | $1,129,250 for three unit homes, or $1,403,400 for four |
| Modification program prior to the December 31, 2012 | | | | unit houses. |
| deadline. Borrowers who require mortgage refinance | | | | HAMP guidelines require mortgage service providers |
| must apply for Making Home Affordable Refinance | | | | to lower mortgage payments to 31-percent or less of |
| program prior to the June 10, 2010 deadline. | | | | borrowers' gross income. To meet lending criteria, |
| Making Home Affordable eligibility requirements are | | | | banks temporarily reduce the rate of interest charged |
| somewhat limiting, particularly for borrowers who are | | | | against the note and extend payment terms. |
| delinquent with mortgage payments. In order to qualify | | | | Home Affordable Refinance Program (HARP) is |
| for Home Affordable programs, borrowers must be | | | | available to borrowers with mortgage notes for |
| current with home loan payments and cannot have | | | | residential properties consisting of up to four units. |
| been more than 30 days past due on mortgage | | | | Mortgage refinance criteria requires borrowers to be |
| payments with the past twelve months. | | | | current with their home loan payments; have no |
| Lender participation in Making Home Affordable | | | | delinquent installments of more than 30 days within the |
| programs is voluntary. However, mortgage lenders | | | | previous twelve months; and owe less than |
| offering home loans guaranteed by Freddie Mac and | | | | 125-percent of the home's current market value. |
| Fannie Mae are required to participate in Home | | | | Homeowners facing foreclosure should contact their |
| Affordable programs. Homeowners can obtain a list of | | | | bank immediately to determine which options are |
| participating lenders via the Making Home Affordable | | | | available or to inquire about Home Affordable |
| website. | | | | foreclosure alternatives program. |
| When homeowners apply for Home Affordable | | | | Program details and eligibility requirements are provided |
| Modification Program (HAMP) they will be subjected to | | | | at MakingHomeAffordable.gov. Homeowners can use |
| standard lending practices and should organize financial | | | | home loan calculators to determine if they meet loan |
| documents prior to contacting their mortgage lender. | | | | modification or mortgage refinance criteria; locate |
| Borrowers will be required to provide lenders with a | | | | additional resources; and review a list of frequently |
| Request for Modification and Affidavit (RMA) form, | | | | asked questions about each Home Affordable |
| IRS 4506-T tax transcription authorization form, and | | | | program. |