2013 Federal Help Programs For Troubled Homeowners

By: Huntsville Real Estate Expert Mike Manosky On September 6, 2013

Although the outlook for the housing industry has improved in recent months, far too many owners who recently received the assessments on their Huntsville AL real estate learned that their mortgages are (still) underwater.

helpThe federal government has six programs, some older, some recently revised, and one brand new, specifically for those in jeopardy of losing their homes.  Listed below are the “bare bones” of each one and some sites at which to garner further information:

  • HAMP Tier 1 and Tier 2 – The Home Affordable Modification Program (HAMP) has been extended through 2013 and expanded to help more homeowners. HAMP Tier 2 is now an option for homeowners who want to modify a home that is not their primary residence, did not previously qualify for modification, or who defaulted on a HAMP plan in the past.
  • Home Affordable Foreclosure Alternatives (HAFA) Updates – This program is designed to help homeowners not backed by Fannie Mae or Freddie Mac transition to more affordable housing. HAFA provides two options: a short sale or a Deed-in-Lieu for foreclosure.
  • Independent Foreclosure Review Alternative Settlement In January thirteen servicers/lenders reached an agreement with federal regulators to pay more than $8.8 billion in cash payments and other assistance to help borrowers.  More than 3.9 million borrowers, whose homes were in foreclosure in 2009 and 2010, are expected to receive cash compensation in a timely manner.
  • Fannie Mae Refinancing Incentive – Fannie Mae announced in January that lenders will be allowed to offer a refinancing incentive for Huntsville AL real estate which would be used to obtain a lower payment or move to a more stable mortgage product.  Click here for details.
  • Hardest Hit Funds – In 2007 the Federal government allocated Hardest Hit Funds to 18 states and the District of Columbia to help homeowners who are unemployed or underemployed. Many of the states have recently made program changes to help more homeowners.  States have until the end of 2017 to utilize the funds allocated through this program. To find out more regarding specific Hardest Hit Fund programs in your state, contact the Housing Finance Agency,
  • The federal government recently announced a new loan-modification program (for Fannie and Freddie-backed mortgages) requiring no documentation of income or financial hardship. Launched by the Federal Housing Finance Agency, the program went into effect July 1, 2013.

Huntsville Alabama Real Estate Real Estate Broker, Mike Manosky

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