What Is the Making Home Affordable Program?:
The Treasury Department launched the Making Home Affordable Program to help homeowners avoid foreclosure. Treasury also created a new website to help mortgage-holders find out if they qualify for the government's loan modification program. The website, Makinghomeaffordable.gov, provides an interactive self-assessment tool that also calculates potential reductions in monthly mortgage payments. (Source: U.S. Treasury Dept. Press Release, March 19, 2009)
How the Making Home Affordable Program Works:
This program helps homeowners before they get behind in their payments. Most banks won't allow a loan modification until the borrower misses three payments. To qualify, your mortgage must be
- Worth more than the home is worth.
- Issued before January 1, 2009.
- Less than $729,750.