For the last four years, HAMP, the Home Affordable Modification Program has been one of the big sources of help for struggling homeowners. The government mortgage help program provides homeowners with a variety of options to save their mortgage. However, not everybody qualifies for the Home Affordable Modification Program. Fannie Mae introduced the Payment Reduction Plan, also known as PRP, as an alternative for those who could not qualify for HAMP. As of January 1st, 2012, this option is no longer available.

Why has Fannie Mae cancelled this relief program? According to press releases from Fannie Mae, the volume of applications and existing homeowners in the program did not justify keeping it running. The Payment Reduction Plan started on October 26, 2009, and was first designed as a bridge program to help those who were trying to qualify for HAMP. It later developed into an alternative for homeowners who did not meet the criteria for the Home Affordable Modification Program. The main attraction of the PRP is it didn’t only reduce monthly payments, it reduced the mortgage principal and the mortgage interest rates, which provided “real” help to homeowners. For instance, a homeowner in the Payment Reduction Program could benefit from a reduction of 30 percent in monthly mortgage payments.

This is in stark contrast of so-called modification programs that simply extend the term of the mortgage or attach late payments to the end of the mortgage. Unfortunately, the application process for the Payment Reduction Plan seems to have been less streamlined as its creators had intended and the volume of successful candidates has dropped in the last two years.

Sadly, the Payment Reduction Plan was itself a downscaling of the previous “best mortgage rate reduction” in town: Fannie’s HomeSaver Forbearance Program. The HomeSaver Forbearance Program offered homeowners who were struggling with their mortgage payments a reduction of up to 50 percent for qualifying candidates. The argument Fanny Mae offered for the drop in mortgage reduction offered by their PRP program was that 30 percent was a more realistic and “permanent” reduction for mortgage servicers. It seems 30 percent is no longer a realistic or permanent solution either.

Nevertheless, homeowners looking for government help for their mortgages still have options to consider. For instance, eligible applicants can apply for the Forbearance Relief program Fannie Mae plans to launch in March 2012. The Forbearance Relief program is designed, as the PRP was, to cater for homeowners who do not qualify for the mainstream modification programs, such as unemployed homeowners who have fallen behind on their mortgage payments.

Fannie Mae’s Alternative to HAMP Gets Retired; New Options Available is a post from: Government Mortgage Help

Up to now, homeowners who are struggling to pay their mortgages had four main options: selling, a mortgage refinance, a loan modification or a short sale. Fannie Mae now offers home owners who are struggling to make payments another way to get back on their feet.

The program is called the Forbearance Relief program and Fannie Mae is requiring all its approved servicers to offer it to unemployed borrowers starting from March 1, 2012.

The Program

What does this program offer? It doesn’t reduce the principal of the mortgage, it doesn’t reduce the interest rate. However, it does offer what many home owners need more than anything: time. In a nutshell it provides unemployed borrowers with 6 to 12 months of forbearance to allow homeowners time to get a job and put their finances in order. During the forbearance time lenders are not allowed to charge borrowers for late charges. In the event that a homeowners qualifies for a loan modification while in the forbearance period, the servicer must waive any unpaid late charges.

This program will simplify the existing forbearance requirements and simplify the application procedure. Freddie Mac—the other Government subsidized second market corporation—will also offer this program, starting from February 1st.

Requirements

This is one of the strengths of this program. The Forbearance Relief program is open to most struggling homeowners. This includes delinquent borrowers, borrowers on the verge of delinquency and underwater mortgages. However, it is only open to principal residence homes. In other words, only borrowers who use the home in question as their main residence can apply. Second homes, vacation homes or investment properties cannot qualify for forbearance relief.

MBS Mortgages

Mortgages that have been pooled into mortgage-backed securities are a special case in the Forbearance Relief program of Fannie Mae and Freddie Mac. Homeowners whose mortgages have been included in MBS may qualify for up to six months of forbearance, but only if the pools were issued from June 1, 2007 to December 1, 2008. Longer forbearance plans may be offered, but only to mortgages pooled in to mortgage based securities before May 2007 or after January 2009.

Extensions

Once a mortgage is approved for the Forbearance Relief program, the homeowner must take steps to reinstate the mortgage payments by the end of the forbearance period. If a homeowner needs an extension, the application for the extension must be filed between day 120 and 135 of the forbearance plan (between month four and five). Note that eligibility for this program is determined on a monthly basis.

Fannie Mae’s New Mortgage Program of Forbearance Relief for Struggling Home Owners is a post from: Government Mortgage Help

Up to now, homeowners who are struggling to pay their mortgages had four main options: selling, a mortgage refinance, a loan modification or a short sale. Fannie Mae is trying to give home owners who are struggling to make payments and need a little time to get back on their feet.

The program is called the Forbearance Relief program and Fannie Mae is requiring all its approved servicers to offer it to unemployed borrowers starting from March 1, 2012.

The Program

What does this program offer? It doesn’t reduce the principal of the mortgage, it doesn’t reduce the interest rate. However, it does offer what many home owners need more than anything: time. In a nutshell it provides unemployed borrowers with 6 to 12 months of forbearance to allow homeowners time to get a job and put their finances in order. During the forbearance time lenders are not allowed to charge borrowers for late charges. In the event that a homeowners qualifies for a loan modification while in the forbearance period, the servicer must waive any unpaid late charges.

This program will simplify the existing forbearance requirements and simplify the application procedure. Freddie Mac—the other Government subsidized second market corporation—will also offer this program, starting from February 1st.

Requirements

This is one of the strengths of this program. The Forbearance Relief program is open to most struggling homeowners. This includes delinquent borrowers, borrowers on the verge of delinquency and underwater mortgages. However, it is only open to principal residence homes. In other words, only borrowers who use the home in question as their main residence can apply. Second homes, vacation homes or investment properties cannot qualify for forbearance relief.

MBS Mortgages

Mortgages that have been pooled into mortgage-backed securities are a special case in the Forbearance Relief program of Fannie Mae and Freddie Mac. Homeowners whose mortgages have been included in MBS may qualify for up to six months of forbearance, but only if the pools were issued from June 1, 2007 to December 1, 2008. Longer forbearance plans may be offered, but only to mortgages pooled in to mortgage based securities before May 2007 or after January 2009.

Extensions

Once a mortgage is approved for the Forbearance Relief program, the homeowner must take steps to reinstate the mortgage payments by the end of the forbearance period. If a homeowner needs an extension, the application for the extension must be filed between day 120 and 135 of the forbearance plan (between month four and five). Note that eligibility for this program is determined on a monthly basis.

Fannie Mae’s New Mortgage Program of Forbearance Relief for Struggling Home Owners is a post from: Government Mortgage Help

Perhaps you have found yourself in the same predicament as many of your hardworking Nevada neighbors, and are struggling to survive under a tough economy. If this is the case, then your mortgage may have become an overwhelming financial monster that is threatening to take away your family’s stability. Here are some helpful options to help you get back in the game while you get back on your feet.
A wonderful federal program available through your lending institution is the Home Affordable Modification Program (HAMP) http://www.makinghomeaffordable.gov/ . Under this provision, the homeowner and the lender are both trying to save the loan and avoid foreclosure. The basic idea is that a debt to income formula will help to establish whether some adjustments to the loan will get you back on track with your payments, to everyone’s satisfaction. Modifications to the original loan agreement are created, making regular payments possible once again. The terms can be changed by lowering the interest rate, stretching the loan out over a longer period of time, changing to a fixed rate mortgage if you didn’t have this already, or incorporating already missed payments back into the loan. Any of these options, or a combination of them may be just what you need to be able to start paying your loan on time again.
In order for this to work for you, remember that you must show in the first three months after modification, that you are able to make the agreed upon payments on time. At this point the contract changes are officially instituted.
For further options and counseling, a great resource is the Homeowner’s HOPE hotline 888-995-HOPE  .  Provided by The Homeownership Preservation Foundation (HPF) http://www.995hope.org/   , this independent, non profit organization is endorsed by  U.S. Department of Housing and Urban Development and the Department of the Treasury as a valuable link to council and options for families faced with foreclosure on their homes.
Another option would be to go directly to the U.S. Department of Housing and Urban Development site, where you can request foreclosure avoidance counseling. A list of HUD housing counseling agencies located in Nevada can be found right on the website, listed with their telephone numbers. http://hud.gov/offices/hsg/sfh/hcc/fc/
Keep in mind that there are plenty of fraudulent offers of help out there. All of us know that quick solutions that sound too good to be true often are. Desperation can cause any of us to make poor choices that leave us completely dry financially, and Nevada has been plagued by plenty of scam artists that take advantage of our natural desire to save our homes. Stick to correct lending institutions and avoid a lot of headache. Check out the helpful information provided about Nevada scams on the Nevada Department of Business and Industry site http://foreclosurehelp.nv.gov/
The bottom line is, there are good options out there. Try reaching out to these appropriate resources , and you may find just the right amount of financial relief needed to keep your family secure, while you focus on moving forward.

Nevada Mortgage Help: State of Nevada Foreclosure Relief Options is a post from: Government Mortgage Help

If the economy has hit your family hard as it has many others in recent years, you have undoubtedly run behind on bills that in the past were a non issue. Juggling cramped funds can be at the least a headache, but more seriously can turn into a life altering problem when you are unable to keep up with the mortgage on your home.
In order to help Connecticut families along the way to financial recovery without losing the important stability of their homes, there are several programs offering some relief from the burden of a mortgage that is heading toward foreclosure. The Connecticut Housing Finance Authority (CHFA) 860-571-3500 is offering the CT Families Program which offers you the option to refinance with a 30 year fixed loan. You may still qualify in many cases even when your mortgage has become higher than the worth of your home. Your burden may further be relieved by help with closing costs on the second mortgage.
A valuable option available to those who do not qualify for the CT Families program, is the Emergency Mortgage Assistance Program (EMAP) 860-721-9501. If you have been unsuccessful in resolving your delinquency through personal contact with your mortgage holder or mortgage counselor, and you cannot find a way to financially restore your loan, you may qualify for this state provided assistance. You will be under a new, 30 year fixed rate loan. This provision is made for those undergoing credible financial hardship, who have taken the reasonable steps already listed to resolve the situation. Under Connecticut law, financial institutions are required to advise you of this resource when you are facing foreclosure.
The third step to take, if you do not qualify for the above options, would be through the Homeowner’s Equity Recovery Opportunity (HERO) Program. Under this provision, The Connecticut Housing Finance Authority would have to determine that you do not qualify for CT Families or EMAP help. They then are able to negotiate with your mortgage holder to purchase the loan for the State of Connecticut. Once the mortgage is in the State’s hands, they can create reasonable terms for repayment by you, the homeowner.
You may not have reached a state of emergency yet, but are struggling and unsure of the future. In this case, look into the The Mortgage Relief Program. This is a bank supported opportunity for homeowners who are dealing with high rate or non traditional loans. Various New England banks are participating. They can be a valuable resource, with information about both state and federal assistance programs, including Federal Housing Authority Loans and the MHA or "Obama Plan". Citizens Bank, Sovereign Bank, TD Banknorth, Webster Bank, and Bank of America are participators.  

Connecticut Government Help: Connecticut Mortgage Assistance Programs is a post from: Government Mortgage Help

What is HARP? The Obama current administration last yr launched HARP to re-finance credit seekers in whose mortgages were being guaranteed by Fannie and Freddie and who were present-day on their payments. The idea was simple: Should you be making your payments promptly but didn’t have enough equity to re-finance, you’d be able to lower your rate without paying down your mortgage loan balance or having to remove home finance loan insurance policy.

Initially, this program was limited to borrowers who owed between 80% and 105% for their properties. In mid last year, this program was opened to borrowers who owed as much as 125% on the price of their houses.

But a quantity of unforeseen problems have led fewer borrowers to consider the offer of lower rates. Fewer than 900,000 home owners have refinanced beneath HARP in the last 2½ years, and just 72,000 of these borrowers have loan to value ratios between 105% and 125%.

Just how is HARP being expanded? Borrowers could quickly be capable of refinance despite just how far underwater they are. This should have a major impact in certain parts of Nevada, Arizona, and Florida where lots of borrowers owe a lot more than 125% of the worth of their houses. In Nevada, for example, two thirds of all loans backed by Fannie Mae are upside down, and 50 % of all loans are above the 125% l-t-v cut off.

The program will continue to be restricted to loans that were delivered to Fannie and Freddie prior to June last year, which means that anyone who has already refinanced under HARP won’t have the ability to remortgage again.

Obama’s move to try to eliminate re-financing impediments for millions of upside down home owners came as Republican oppose most any mortgage assistance. The plan, introduced not surprisingly on Monday, may possibly give a modest boost to spending plus some relief to homeowners, economists stated more action could be demanded to stabilize the ailing real estate industry.

The overhaul in the House Affordable Refinance Program, or HARP, may let borrowers whose home loans are backed by FannieMae/FreddieMac refinance, it doesn’t matter exactly how far their homes’ values have fallen, eliminating an earlier limit.

“If you meet certain prerequisites, you will have the possibility to re-finance at lower rates, that can save hundreds of dollars per month, and thousands of dollars annually in home loan payments,” The president stated during a speech Monday in Vegas.

The Obama administration continues to be criticized for property relief programs that didn’t meet released targets, and Monday didn’t want to supply estimates of the quantity of borrowers to be assisted through the latest effort.

Monday’s changes will probably allow borrowers to remortgage their mortgage and it doesn’t matter exactly how far prices have plunged in a given market. Loans that exceed the present 125% loan-to-value limit won’t be qualified to refinance until early next year, officials said.

Other home owners can still be left out, including those whose mortgages aren’t guaranteed by Fannie and Freddie and those who took out mortgages previously 2½ years.

Some critics have cautioned of unintended issues to home loan markets if investors worry that political intervention will probably lead mortgage-backed securities to repay sooner than expected as loans re-finance.

Rep. Spencer Bachus (R., Ala.), the chairman on the House Financial Services Committee, criticized the re-finance plan on Monday.

The policy tweaks won’t do much to improve the equity position of about eleven million borrowers who’re upside down, and they won’t assist boost underlying real estate demand, which is still depressed.

New York Federal reserve President William Dudley stated the alterations were “a step in the right direction” but said a “comprehensive approach” was needed to stabilize residence prices.Mr. Dudley is just one of several Federal reserve officials who in current days has promoted more urgent action to help real estate. Federal reserve Governor Daniel Tarullo last full week urged the central bank to resume large scale purchases of mortgage-backed securities which are driving home finance loan interest rates even lower.

Analysts said probably the most important changes in the remortgage rules Monday concerned buybacks, where banks need to repurchase from Fannie and Freddie defaulted loans with underwriting flaws. Which has discouraged many lenders from refinancing all but the safest loans.

Banks “will take a seat on the sidelines once they fear” that re-financing can put these people at risk, stated Gene Sperling, the president’s top economic adviser. Mr. Sperling said the decision by the federal Housing Finance Agency, which regulates Fannie and Freddie, to provide a substantial waiver from potential putbacks on HARP loans come up with potential to “unleash” more re-financing.
The changes should help borrowers who have a Fannie guaranteed house loan having a 6.16% rate. Many us residents satisfy the suggestions on the HARP program but simply simply because they have mortgage insurance policies, they’ve been toldto
Under the new changes, Mr. Sims should certainly be able to go to lenders to refinance his property finance loan.

The modification should help many borrowers within the hardest-hit real estate markets. Many Americans owe around 50% more than the property’s projected value, leaving them too far underwater to refinancing, these changes should remedy that.

New FHFA Underwater Refinance Program is a post from: Government Mortgage Help

The State of Vermont introduced a battery of rules and regulation changes to help streamline the financial industry and protect homeowners who are at risk of losing their homes. An important element in the protection of Vermont homeowners is the Vermont Mortgage Assistance Program.

The Vermont Mortgage Assistance Program is managed by the Vermont Banking Division and is responsible for providing advice, information and assistance to residents who have been affected by the mortgage crisis and who are struggling to make mortgage payments. However, it is important to note the Mortgage Assistance Program does not have any actual funding to provide cash payments to borrowers. Nevertheless, the Mortgage Assistance Program can help by providing quality advice and by facilitating the communication between borrowers and lenders.

According to the information provided at the Vermont’s Mortgage Assistance Program, the most important thing to know when you are facing mortgage issues is that time is of the essence. The sooner you deal with your delinquency problems the more options you have and the more likely you are of saving your home from foreclosure.

A foreclosure will typically take six to nine months to complete. This is important because even if a lender is willing to try and negotiate a settlement, it is unlikely the lender will stop the process while the settlement is negotiated.

The Vermont Mortgage Assistance Program also offers mediation services between lenders and borrowers. It also provides advice on how to arrange for loss mitigation with your lender. Loss mitigation is a negotiation between borrowers and lenders that studies the options a borrower has to restitute payments in arrears while reducing payments to a level that is affordable and realistic considering the financial situation of the borrower.

If your borrower is not willing to negotiate a solution, the Vermont Mortgage Assistance Program can help you get in touch with local institutions that offer refinancing options to borrowers. A government program that offers refinance and mortgage modification options is HOPE, which may be a useful resource.

Another point highlighted by Vermont’s Mortgage Assistance Program is the fact that in some cases losing your home is the best alternative. Trying to save your home at all casts may perpetuate a bad investment you can’t afford and are better off without. The program can suggest foreclosure alternatives that provide the least damaging alternatives for your credit rating.

Contact the Vermont Mortgage Assistance Program by clicking here or calling (802)-828-568-4547.

Vermont Mortgage Assistance Program is a post from: Government Mortgage Help

The State of Vermont signed a new law which protects homeowners who are at risk of losing their mortgages. The measures were advocated by Paulette Thabault, the Commissioner of Banking, Insurance Securities and Health Care Administration and supported by the financial services industry. How do these measures help homeowners? How will it change the relationship between banks and borrowers?

Enhanced Mortgage Assistance

The new bill provides an enhanced mortgage assistance to borrowers. Although Vermont has been one of the states least affected by the mortgage crisis, the new law provides practical assistance to homeowners who are struggling to meet their mortgage payments. The program, which was included in Governor Douglas’ Economic Growth Initiative, directs homeowners to credit counseling, refinancing options and other alternatives to foreclosure.

Streamlined Licensing

One of the problems the mortgage crisis uncovered was an inconsistent licensing process and ineffective bureaucracy, which was a burden to financial institutions but failed to protect consumers. The new law has the ambitious goal of reducing the regulatory burden on lending institutions, improve the communication between regulators and reduce fraud by changing the licensing process and industry standards.

These changes include setting a minimum competency level for all mortgage loan originators, requiring all borrowers to complete a minimum of 20 hours of pre-license education, introducing special screening of mortgage loan originators, improve communication between  state regulators so fraudsters cannot hop from one state to another and bolster anti-fraud measures. Let’s add some details to those general measures.

The additional screening of loan originators will require regulators to deny the application of loan originators who have committed a felony in the last seven years, have ever committed a financial felony or have had a similar license revoked. This will increase the penalty of committing any type of financial fraud and helps protect consumers from financial consultants with a criminal or unethical work history.

The expansion of anti-fraud regulations includes a list of practices which mortgage originators cannot practice, such as misleading borrowers, collective fees which are not approved by state regulators, advertising loan terms which are not available and bribing or otherwise influencing the work of an appraiser.

If you live in Vermont and need assistance with your mortgage, call 1-888-568-4547. For more information on what to do if you are having problems with your mortgage read our next article on Vermont’s Government Mortgage Assistance.

Vermont Mortgage Assistance: Government Mortgage Help is a post from: Government Mortgage Help

The Idaho Housing and Finance Association have worked with IdaMortgage .com for over 40 years to help people to buy their homes. The website has a lot to offer including Homebuyer Education, information about programs with excellent interest rates, help with down payment and closing costs and tax credits for property buyers.

You can apply for any of the loan products on offer. For example if you need help with down payment and closing costs then the DPCC (Down Payment Closing Cost Assistance Program) could be exactly what you need.

This loan is especially designed for first-time homebuyers whose income is under 80% of the average for the area. The loan is for at least $1,000 and can not be for more than $8,000. The borrower must pay out at least $500- and the house must have been owner occupied or vacant.

Before you apply for the loan you must complete the Education Program for Homebuyers called Finally Home! A very good start to an IdaMortgage Home Loan would be to go on line at IdaMortgage.com and answer the questions to find out if you are eligible. You could do the same thing by calling 1-866-432-4066. As soon as you are accepted as eligible you will be given a referral to a lender who participates in the program. You will then be able to go ahead and find your ideal property and with the IdaMortgage loan at a fixed low rate, for 30 years you can soon be enjoying the sensation of living in your own home.

There is a variety of programs available such as the Good Credits Rewards Loan. It is an arrangement whereby you can have a second loan or mortgage for as much as 3.5% of the value of your first mortgage which you can then use for your down payment and closing costs. It is a program designed for people whose income is below 140% of the average for the area. They must complete the Finally Home! Homebuyer Education Program and have a credit score of not less than 680.

The Advantage Loan Program is for 30 years and can be for a first-time homebuyer or not as this is not a requirement. The are income limits but there are no sales price limitations. You can use the loan for the purpose of buying your property or for refinancing and you could be entitled to as much as $2,000 tax credit each year.

Those who qualify for this loan would also be entitled to take out the USDA-RD Streamline Refinance Loan. This loan has no sales price limits but there are income limits as is the case with the Advantage Loan. This Streamline loan has the advantage that your present loan may be an IHFA loan or not as this is not a requirement.

The FHA 203(k) Streamline Rehabilitation Loan has been especially designed for those who need to make improvements to their property. This could be painting –new carpets or even new windows or roof. There are many other products available so you are invited to call or go on line to find the right program for you.

Idaho Housing And Finance Association Can Help You Buy Your House Through IdaMortgage.Com is a post from: Government Mortgage Help

Hawai Mortgage Help

The Department of Hawaiian Homelands DHHL accepts applicants who wish to participate in programs which help those who qualify for aid that is Native Hawaiian Families who have an income of 80% or less of the HUD local area average. They must also be eligible to live in Hawaii. The applicants who wish to develop programs with the aim of helping in this regard can be local, non-profit or for-profit organizations. The programs can receive funding grants starting at $10,000. The programs can be eligible for funding if they are for Development including making affordable housing available, giving down payment or closing cost loans or direct lending.

Housing Services which could include payments to prevent foreclosure. Housing Management such as loan processing and managing projects for affordable housing. There are other categories too. The Projects are to help the beneficiaries who meet the requirements over a year or more if necessary and must be related to the DHHL Native Hawaiian Housing Plan objectives. These objectives include making reasonably priced housing available for Hawaiian families of low income.

To understand the process of home buying and especially of first-time home purchase Homebuyer Education is vital. In Hawaii, those who are not too seriously disadvantaged financially and who can with the help of a counselor go through the necessary steps to property purchase, are directed to Level 1-Basic Management Homebuyer Education. Clients at level one will find that within six months to a year they are prepared to manage a mortgage. They are helped to prepare a plan of action, to develop a budget and shown how to achieve better credit scores. Aid is provided toward debt reduction as well as improving savings and income so that once they are on track with a mortgage the counselor won´t need to do very much to help the client to successfully buy the chosen property. If the client needs longer than a year to be prepared to take on a mortgage then the Level 2 Intensive Case Management Homebuyers Education Program is followed. The counselors will help the client to improve his credit rating and greatly reduce his debt as well as to save money and earn more so that the mortgage loan is a possibility.

This is the same as in Level 1 but it will take more time to achieve the desired result. Due to the present financial crisis it is increasingly difficult to access credit and to qualify for a mortgage people have to meet quite strict qualifications. For this reason Post Home Ownership Counseling and Lease Cancellation Prevention is very important for those who are for the first time taking steps to buy a house. Counseling is available so that clients can be prepared in advance and ready to deal with financial difficulties such as losing employment, medical expenses or heavy debt. So that they can adapt successfully to the situation and avoid foreclosure service providers will help find different solutions toward financial planning which will go a long way to prevent mortgage foreclosure or lease cancellation. Hawaii is in this way helping Hawaiians become responsible homeowners.

Hawaii Has Assistance Programs For Native Families is a post from: Government Mortgage Help