Finding a Counselor

• The Making Home Affordable program falls under the jurisdiction of the Treasury Department and the Department of Housing and Urban Development. The Treasury Department works with the banks on the financial interests of the modifications.
  
  The Department of Housing and Urban Development works with homeowners to avoid foreclosure. Homeowners seeking a counselor can call 1-888-995-HOPE (4673). Callers should have financial and home ownership documents available for the counselor to review.
  
  

Home Affordable Modification Program

• The Home Affordable Modification Program is aimed at homeowners who have trouble making the monthly payments on their home. Homes must have had their mortgage prior to January 1, 2009, be the primary residence and the amount owed must be equal to or less than $729,750.
  
  The program works with the bank to change the terms of the current mortgage in order to provide more affordable monthly payments. The program is for people current on their mortgage, but are struggling to pay or homeowners one or more payments behind on their mortgage.
  
  

Second Lien Modification Program

• The Second Lien Modification Program (2MP) is designed to help homeowners with a second mortgage that are struggling to pay. Many homeowners with second mortgages are having problems paying both mortgages and a second lien can complicate modification of the first mortgage.
  
  Homeowners must be willing to share information about the first mortgage modification with the second lien lender. The homeowner must also have their first home mortgage modified by the Home Affordable Modification Program before having their second lien modified.
  
  Second mortgages must have a principal worth more than $5,000 and payments must be more than $100 a month.
  
  

Home Affordable Refinance Program

• The Home Affordable Refinance Program is designed to help homeowners who cannot get a lower rate mortgage due to the decrease in their home's value.
  
  Due to the housing market crash of the late 2000s, many homes are worth less than they were at the time of the mortgage. This prevents many otherwise qualified homeowners from refinancing to lower-rate mortgages. The program works with homeowners that are current on their payments and have their home mortgage owned or guaranteed by Freddie Mac or Fannie Mae may be eligible.
  
  

Home Afforable Foreclosure Alternative Program

• The Home Affordable Foreclosure Alternative (HAFA) Program is for homeowners who can no longer afford their mortgage without facing foreclosure.
  
  Homeowners and mortgage servicers can agree to a short sale, where the home may be sold for less than the mortgage is worth. All proceeds go to the mortgage servicer.
  
  If a homeowner has made a good faith effort to sell his home but cannot find a buyer the homeowner and servicer can agree to a deed-in-lieu of foreclosure. A deed-in-lieu of foreclosure transfers the property to the servicer instead of going through foreclosure.