GOVERNMENT PROGRAMS

Facing foreclosure can be overwhelming, but you're not alone in this battle. The federal government offers several powerful tools to help homeowners like you regain control of their homes and financial stability. In this comprehensive guide, we'll delve deep into two vital programs: the Home Affordable Modification Program (HAMP) and the Home Affordable Refinance Program (HARP). These initiatives are tailored to empower homeowners by reshaping loans and providing opportunities for refinancing, even in challenging circumstances.

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Government Programs to Stop Foreclosure in Volusia

  • What is the HAMP program and can it save my home?

    \The Home Affordable Modification Program (HAMP) is a beacon of hope for homeowners struggling to make their mortgage payments. It's not just another government initiative; it's designed with your unique needs in mind. It provides loan restructuring. 


    Loan Restructuring: HAMP allows you to restructure your existing mortgage, making it more manageable by lowering your monthly payments to a reasonable and sustainable level. 


    Financial Relief: If you've experienced a financial setback, such as job loss or medical expenses, HAMP can provide the relief you need to regain your financial footing. 


    Eligibility: While eligibility criteria may vary, HAMP aims to assist homeowners facing genuine financial hardship. Meeting specific requirements can open doors to this valuable program.

  • What is the HARP program and can it stop foreclosure?

    The Home Affordable Refinance Program (HARP) is your compass when your home's value has taken a dip, and traditional refinancing seems impossible. 


    Refinance Your Mortgage: HARP enables homeowners to refinance their mortgages, even if their homes are worth less than the outstanding loan balance. This opens the door to better terms and more affordable payments. No Loan-to-Value Ratio 


    Restriction: Unlike traditional refinancing, HARP doesn't impose strict loan-to-value ratio restrictions. If your home's value has depreciated significantly, you may still be eligible. 


    Lower Interest Rates: By refinancing through HARP, you can secure a lower interest rate, potentially saving thousands of dollars over the life of your loan.

  • What are Hud Approved Counselors and how can I find one?

    Partnering with a HUD-approved housing counselor can be a game-changer in your fight to prevent foreclosure. These experts, certified by the U.S. Department of Housing and Urban Development, possess an in-depth understanding of housing-related challenges and foreclosure prevention. Here's why they're your strongest allies: 


    Personalized Guidance: HUD-approved housing counselors work closely with you to assess your unique situation, financial challenges, and goals. They craft personalized strategies to help you navigate the complexities of foreclosure prevention. 


    Liaison with Lenders: These housing counselors act as intermediaries between you and your lender. They negotiate on your behalf, striving to secure solutions that best suit your needs, including loan modifications, repayment plans, or forbearance agreements. 


    Holistic Approach: Beyond foreclosure prevention, HUD-approved counselors provide valuable financial education and budgeting advice, equipping you with the skills to regain control of your finances and build a stable future.


    For a listing of HUD approved agencies, click here. 

HAMP & HARP Program Overview & Process


For HAMP (Home Affordable Modification Program)

  1. Contact your mortgage lender or loan servicer: Reach out to them and express your interest in the HAMP program. They will guide you through the application process and provide you with the necessary forms and documentation requirements.

  2. Complete the application: Fill out the required application forms, providing accurate financial information, documentation of income, and details about your financial hardship.

  3. Review and negotiation: Your lender will review your application and financial documents. They may request additional information or clarification.

  4. Modification offer: If you meet the program's eligibility criteria and your lender approves your application, they will offer you a modified loan agreement with adjusted terms, such as a lower monthly payment.

  5. Acceptance and trial period: If you agree to the modification terms, you'll enter a trial period during which you make reduced payments to demonstrate your ability to meet the new terms consistently.

  6. Permanent modification: After successfully completing the trial period, your loan modification becomes permanent, and your mortgage terms are adjusted accordingly.


For HARP (Home Affordable Refinance Program):

  1. Check eligibility: Determine if you meet the eligibility criteria for HARP, which typically includes being current on your mortgage payments and having a loan owned or guaranteed by Fannie Mae or Freddie Mac.

  2. Contact your lender or a participating lender: Reach out to your current lender or another participating lender to express your interest in HARP refinancing.

  3. Application and documentation: Work with your lender to complete the application process, which includes providing necessary documentation and financial information.

  4. Appraisal (in some cases): Depending on your lender's requirements and specific circumstances, an appraisal of your home may be necessary.

  5. Approval and closing: If you meet the program's criteria and your lender approves your application, you can proceed with the HARP refinance, which will result in a new mortgage with improved terms.

The Clock is Ticking...
Don't Lose your Home to Foreclosure!