What Are The Mortgage Help Programs Offered By The US Government?

When you're finding it difficult to make your monthly mortgage payments of time, you can seek help from the Federal Government. By qualifying to obtain mortgage help under the Home Affordable Refinance Program, Home Affordable Modification Program or the Home Affordable Foreclosure Alternatives, you can prevent losing your house to foreclosure.   
 
How can you benefit by qualifying for HAMP?  
 
The Home Affordable Modification Program (HAMP) offers mortgage help to homeowners who cannot manage their monthly home loan payments. If you have obtained a mortgage before January 1, 2009, and your monthly home loan payment (including property taxes and home owners insurance) is more than 31% of your gross monthly income, you can lower your payments with the help of HAMP. Under this program, lenders receive incentives for to restructuring your home loan and making it affordable.   

What is HARP?   
 
The Home Affordable Refinance Program (HARP) helps borrowers refinance who are otherwise unable to do so because their house has decreased in value. If you have a conforming home loan and you're current on your payments, you can refinance into a 30 year, fixed- rate loan at market rates under this program.   
 
What are the benefits offered by HAFA?  
 
The Home Affordable Foreclosure Alternatives (HAFA) program includes provisions for servicer to allow you do a short sale or deed-in-lieu of foreclosure. By qualifying for help under this program, you can not only prevent a foreclosure but also get $1,500 as relocation assistance. HAFA also provide servicers with $1,000 as administrative and processing costs.   
 
If you owe more than your house is worth, you can also prevent a foreclosure with the new balance reduction plan announced on March 26, 2010. The plan will assist you to cut your mortgage balance and also refinance into FHA loans. If you have lost your job and for that you can't make your home loan payments, the plan will reduce your payments to an affordable level for 3-6 months while you search for a job. So, when you're unable to make your mortgage payments, you must find out from your lender if you're eligible to get mortgage help from the Government.

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