FORECLOSURE AVOIDANCE                                                                              

California Homeowners are entitled to review for foreclosure avoidance, including but not limited to loan modification.  (See, Civil Code §§ 2923.4-2923.6)  Also, the Obama Administration has introduced several options in their Plan to reduce foreclosure in America. (See, HUD.gov, topic “Avoiding Foreclosure”)  Some of the foreclosure options your lender/servicer are supposed to explore with you are listed below.  If you are in default or making payments but facing imminent default, you have a legal right in California to be considered for foreclosure avoidance.  When your lender refuses to work with you, as a homeowner you must use the law to prepare your case and litigate to enforce your rights.  Call for a free assessment to determine whether our legal services are right for you. We are here to help you enforce your rights and keep your home.

• Home Affordable Modification Program (HAMP):

  HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more. Click Here for more information.

• Principal Reduction Alternative (PRA):

  PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home.  Click Here for more information.

• Second Lien Modification Program (2MP):

  If your first mortgage was permanently modified under HAMP SM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage under 2MP. Likewise, If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program. Click Here  for more information.

• Home Affordable Refinance Program (HARP): 

  If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage. Click Here  for more information.

“Underwater” Mortgages

In today’s housing market, many homeowners have experienced a decrease in their home’s value. Learn about these MHA programs to address this concern for homeowners.

• Home Affordable Refinance Program (HARP):

  If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage. Click Here  for more information.

• Principal Reduction Alternative:

  PRA was designed to help homeowners whose homes are worth significantly less than they owe by encouraging servicers and investors to reduce the amount you owe on your home. Click Here  for more information.

• Treasury/FHA Second Lien Program (FHA2LP):

  If you have a second mortgage and the mortgage servicer of your first mortgage agrees to participate in FHA Short Refinance, you may qualify to have your second mortgage on the same home reduced or eliminated through FHA2LP. If the servicer of your second mortgage agrees to participate, the total amount of your mortgage debt after the refinance cannot exceed 115% of your home’s current value. Click Here for more information.

Assistance for Unemployed Homeowners

• Home Affordable Unemployment Program (UP): 

  If you are having a tough time making your mortgage payments because you are unemployed, you may be eligible for UP. UP provides a temporary reduction or suspension of mortgage payments for at least twelve months while you seek re-employment. Click Here for more information.

• Emergency Homeowners’ Loan Program (EHLP),

  Substantially Similar States: If you live in Connecticut, Delaware, Idaho, Maryland, or Pennsylvania, Click Here for more information about EHLP assistance provided in your state.

• FHA Forbearance for Unemployed Homeowners:

  Federal Housing Administration (FHA) requirements now require servicers to extend the forbearance period for unemployed homeowners to 12 months. The changes to FHA’s Special Forbearance Program announced in July 2011 require servicers to extend the forbearance period for FHA borrowers who qualify for the program from four months to 12 months and remove upfront hurdles to make it easier for unemployed borrowers to qualify. Click Here  for more information.

Managed Exit for Borrowers