• Struggling homeowners can receive help from various sources.home sweet home image by David Dorner from Fotolia.com
  
  Millions of Americans are struggling to make their mortgage payments. The mortgage delinquency rate in the U. S. reached 10 percent in the first quarter of 2010, according to the Mortgage Bankers Association. Homeowners hoping to avoid foreclosure may find help from a number of government, nonprofit and lender programs.
  
  

Home Affordable Refinance Program

• Part of the 2009 Financial Stability Act, the Home Affordable Refinance Program (HARP) helps homeowners who have been unable to refinance because their homes have fallen in value. To qualify for HARP, a homeowner must live in the home and be current on his mortgage (defined as not making a mortgage payment more than 30-days late in the last year.) Also, the loan must be owned or guaranteed by Freddie Mac or Fannie Mae. The amount owed on the first mortgage cannot be more than 125 percent of the current value of the home. Finally, the homeowner must be able to afford the new mortgage payment. Homeowners refinancing under HARP will receive current market interest rates. The HARP program is set to expire in June 2011.
  
  

Home Affordable Loan Modification Program

• Also part of the 2009 Financial Stability Act, the Home Affordable Modification Program (HAMP) encourages lenders to modify loans for struggling homeowners. Under HAMP, a lender can reduce a homeowner's mortgage payment by lowering the interest rate to as low as 2 percent, by extending the term of the loan or by delaying or eliminating part of the principal. To qualify for HAMP, a homeowner must live in the home and have a principal balance of $729,750 or less on the first mortgage. Also, the current mortgage payment must exceed 31 percent of the borrower's monthly gross income, and it must be unaffordable due to a documented financial hardship. Finally, the first mortgage must have been established on or before Jan. 1, 2009. HAMP is set to expire Dec. 31, 2012.
  
  

Hope Now

• Hope Now is a nonprofit alliance of counselors, lenders, local governments and other organizations with a goal of helping distressed borrowers stay in their homes. Hope Now holds events across the country and has a telephone hotline where homeowners can talk to HUD-approved counselors about various options and resources available in their area.
  
  

Lender Programs

• Foreclosure is an expensive process for lenders. Many banks have established programs and resources to help distressed borrowers avoid foreclosure. The best options are usually available to homeowners who are only a month or two behind on payments. When calling a lender, a borrower should be prepared with account numbers, an explanation of his current financial situation and documents to prove his income and expenses.