Loan Modification Programs

There are many loan modification programs available to help consumers save their homes from foreclosure. Unfortunately, many programs come and go, with some expiring due to changes in law or changing over time.

As of 2014, there are still many great programs that our housing counseling services can help homeowners take advantage of. Here’s an up-to-date list of some loan modification programs:

  • FHA – Home Affordable Modification Plan (HAMP): The FHA Home Affordable Modification Program (FHA-HAMP) offers those with home loans insured by the Federal Housing Administration (FHA) the chance to lower their monthly payment to less than a third of their monthly income.
  • Vet Loan: those with a Veterans Administration (VA) loan can get help through the Cal Vet Modification program.
  • Home Affordable Foreclosure Alternatives (HAFA) program: The HAFA Program helps homeowners who are eligible for HAMP but cannot save their homes. This programs offers protection for short sales or deed in lieu of foreclosure for eligible borrowers.
  • Back to Work Program: The “Back to Work” program helps those who may have already lost their homes to obtain a new FHA mortgage.
  • The HARP Program: The Government Home Affordable Refinance Program (HARP) helps homeowners who owe more than their home is worth to refinance to a more affordable mortgage.
  • Home Affordable Unemployment Program: The Home Affordable Unemployment Program (UP) can reduce or suspend mortgage payments for 12 months or more for homeowners who are unemployed.
  • 2nd Lien Modification Program: The Second Lien Modification Program (2MP) helps mortgage borrowers with a second mortgage if their first mortgage was modified under HAMP.
  • Hardest Hit Funds: The Hardest Hit Fund (HHF) Programs provide funding to the states that were impacted most severely by the housing crisis. Residents of these states may qualify for different kinds of aid.
  • Principal Reduction Alternative: Principal Reduction Alternative (PRA) is a federal program that reduces the mortgage principal owed if that amount is more than the home is currently worth.