The Making Home Affordable Program offers strong options for homeowners:
(1) refinancing mortgage loans through the Home Affordable Refinance Program,
(2) modifying first and second mortgage loans through the Home Affordable Modification Program and the Second Lien Modification Program and
(3) offering other alternatives to foreclosure through the Home Affordable Foreclosure Alternatives Program.
The objective of a refinance under HARP is to provide creditworthy homeowners who have shown a commitment to paying their mortgage the opportunity to get into a new mortgage with better terms. Homeowners whose mortgage interest rates are much higher than the current market rate should see an immediate reduction in their payments.
To apply for a modification under HAMP, you must:
- Be the owner-occupant of a one- to four-unit home.
- Have an unpaid principal balance that is equal to or less than:
- 1 Unit: $729,750
- 2 Units: $934,200
- 3 Units: $1,129,250
- 4 Units: $1,403,400
- Have a first lien mortgage that was originated on or before January 1, 2009.
- Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income.
- Have a mortgage payment that is not affordable due to a financial hardship that can be documented.
The program expires on June 10, 2010.
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