Understanding the Subprime Mortgage Crisis

How Does Real Estate Affect the U.S. Economy?

Real estate is an integral part of the economy. Although many economists said that the slowdown in real estate would be contained, that was just wishful thinking.

HARP

The HARP (Homeowner Affordable Refinance Program) was designed to stimulate the housing market by allowing up to 2 million credit-worthy homeowners who were upside-down in their homes to refinance, taking advantage of lower mortgage rates. Unfortunately, banks are just too risk averse to help those with less-than-stellar credit. Instead, they've been cherry-picking applicants. The Obama Administration introduced HARP in April 2009. Two years later, only 810,00 homeowners were helped. More than 90% were less than 5% upside down.

Making Homes Affordable

The Making Homes Affordable Program is an initiative launched by the Obama Administration to help homeowners avoid foreclosure. Find out if you are eligible.

Homeowner Stability Initiative

On February 18, 2009, President Barack Obama announced a $75 billion plan to help stop foreclosures. The Homeowner Stability Initiative (HSI) was designed to help between 7-9 million homeowners avoid foreclosure by restructuring or refinancing their mortgage.

HOPE NOW

HOPE NOW is a cooperative effort between the government and 90% of subprime mortgage lenders to help homeowners who may not be able to make higher mortgage payments after their interest rate resets.

Fannie and Freddie Programs

Freddie Mac and Fannie Mae developed resources for those crushed by subprime mortgage debts. Find out how to get help if you are a subprime mortgage holder.