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New Project Aims to Help Many Homeowners by End of Year

Posted by Mike Anderson on 11:41 AM on May 30, 2013

Twin Cities Habitat for Humanity’s Mortgage Foreclosure Prevention Program (MFPP) is happy to be participating in the Making Home Affordable Outreach and Intake Project. A new effort by national, state, and local organizations, the project aims to help as many homeowners as possible by the end of the year.

What is Making Home Affordable (MHA)?

The MHA program is part of the Obama Administration’s plan to help homeowners get mortgage relief and avoid foreclosure. It is an initiative of public, private and nonprofit sector organizations including Twin Cities Habitat for Humanity, The Minnesota Homeownership Center, The United States Department of Housing and Urban Development and more.

Who qualifies?

In general, Making Home Affordable is directed at homeowners who are …

  • In danger of foreclosure:  Having difficulty affording mortgage payments.
  • In foreclosure:  Missed four or more mortgage payments.
  • Underwater:  Own more on their home than it’s worth.

More specifically, homeowners can get help from the MHA program if they:

  • Owe less than $729,000.
  • Own a home that is less than four units.
  • Pay more than 31% of their gross income on housing related expenses.

What options are available?

  • Forbearance:  6 or 12 month change in payment amount with the amount not paid added to the balance of the loan.
  • Modification: a change in the terms of a loan, usually the interest rate and/or term.
  • Refinance:  Negotiate a new loan at a more favorable interest rate to pay off balance of old loan.  In 2007, rates were at 5-7%, now they’re at 3-4%.
  • Reinstatement:  Picking up with the loan where it was left off with the amount that wasn’t paid
  • Repayment Plan:  Temporary increase in payments to make up for amount missed.

How do I apply?

For those qualifying to participate in the Making Home Affordable program, there are three options:

Tags: Mortgage Foreclosure Prevention Program

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