Loan Modification And Foreclosure Prevention Programs
At The Law Offices of Richard B. Rosenblatt, PC, we strive to help individuals and families keep their homes. Loan modification is an alternative that allows homeowners to stay in their homes, even if they cannot make their mortgage payments. Through loan modification, the monthly payments are reduced so that homeowners can pay it off.
There are several types of loan modification programs that a homeowner can enter to reduce payments. Read more about the types of programs available in Maryland, Virginia and Washington, D.C.
Home Affordable Modification Program (HAMP)
In June 2012, the Obama Administration expanded the coverage of the Home Affordable Modification Program (HAMP) to include homeowners who:
- Are applying for a modification on a home they will rent to tenants
- Previously qualified for HAMP but defaulted on their payments
- Previously did not qualify for HAMP because debt-to-income ratio was 31 percent or lower
Even though HAMP officially closed on January 1, 2017, many lenders are still granting modification requests if you meet these requirements. Successfully obtaining a modification can be a challenging process, and forgetting to submit any requested information can lead to a denial.
When working with our clients, we thoroughly analyze your situation to help you determine whether your modification request is likely to succeed. We know how frustrating it is to work with lenders, which is why we take a hands-on approach. Our attorneys communicate directly with lenders after submitting your modification application. Having successfully resolved hundreds of modifications since 2012, we know to improve your chances of receiving a favorable outcome.
Home Affordable Refinance Program (HARP)
Even if you are not behind on your mortgage payments, you may still want to refinance your home. However, there are some situations in which you are unable to refinance your home because the value of your home has declined.
If the above-mentioned situation applies to you, then the Home Affordable Refinance Program (HARP) may be the best option for you. This program allows you to get a more affordable mortgage. Our attorneys can help you with the loan application and guide you through the HARP process so that it will be easier for you to keep your home.
There were some questions whether or not this program would expire. Fortunately for homeowners, the federal government has extended it through 2018. You may qualify for HARP if you meet the following criteria:
- Either Freddy Mac or Fannie Mae owns your loan
- The loan must have originated before May 31, 2009
- You must be current on your mortgage and have had no more than one late payment over the past 12 months
- The home must be your primary residence
- The loan-to-value ratio must be higher than 80 percent
Other Loan Modification And Foreclosure Prevention Programs
- For those who want to move but owe more than their home’s market value, the Home Affordable Foreclosure Alternatives Program (HAFA) assists homeowners with negotiating short sales and deeds in lieu of foreclosure. This may allow you to sell or give back your house while limiting or eliminating your debt. Relocation assistance is also available.
- If you are underwater on your mortgage (owe more than your home’s value) but are up to date on your payments, the Federal Housing Administration Short Refinance for Borrowers With Negative Equity (FHA Short Refinance program) could refinance and transfer your mortgage into a more stable and affordable FHA-insured mortgage.
- District of Columbia residents may be eligible for the Hardest Hit Fund (HHF), which offers help with loan modifications, mortgage payment assistance and transition assistance. This program has been extended to run through December 31, 2020.
Learn More About Modifying The Terms Of Your Mortgage
Our legal team may be able to help you avoid foreclosure through loan modification. Learn more about HAMP, HARP and other loan modification programs today in a free initial consultation with a lawyer from The Law Offices of Richard B. Rosenblatt, PC, in Rockville. Contact us online or call 301-637-0402 or 866-930-0413.