An Alphabet Soup of Home-Help Resources

Homeowners are baffled by the endless array of rescue programs and related industry groups, non-profits, hotlines, buzzwords, and acronyms. To facilitate some understanding, here’s a list—or at least the start of a list—of the most prominent resources out there. In upcoming blogs, we’ll explain the terms more thoroughly.

HOPE NOW is an industry-created alliance of mortgage servicers, investors, counselors, and other mortgage market participants. It is implementing a coordinated plan to help as many homeowners as possible prevent foreclosure and stay in their homes. Go to http://www.hopenow.com/ or call the free Homeowner’s HOPE™ Hotline at (888) 995-HOPE.

The Home Affordable Modification Program (HAMP) was created by the Obama Administration to help homeowners refinance or modify their mortgage payments to more affordable levels. Homeowners who are in immediate danger of foreclosure may qualify for a loan mod that may reduce their monthly mortgage payments to no more than 31 percent of their gross income. If the borrower makes timely payments on the modified loan, they can receive up to $1,000 a year for five years to be applied to their mortgage loan. There is no charge to the homeowner for the loan modification. The program will be available until December 31, 2012

The Home Affordable Refinance Program (HARP) is designed primarily for people whose monthly mortgage payments are up-to-date but who cannot refinance into a lower-rate loan, typically because their loan balance is higher than their property is now worth. Homeowners who have adjustable rate loans and a good payment history may be able to refinance their loans into a stable, fixed-rate 15- or 30-year mortgage. These homeowners may not be in immediate danger of foreclosure, but are facing a future mortgage payment they will not be able to afford. Also, credit worthy homeowners who owe more on their home than the home is worth may be able to refinance their loans to take advantage of lower interest rates – something they were not previously able to do. This program will be available to eligible homeowners until June, 2010.

More information is at http://www.makinghomeaffordable.gov. Here’s a good article differentiating HAMP and HARP: http://www.heraldtribune.com/article/20100110/ARTICLE/1101000/?p=all&tc=pgall

NeighborWorks® America creates opportunities for people to improve their lives and strengthen their communities by providing access to homeownership and to safe and affordable rental housing. Much of our success is achieved through our support of the NeighborWorks® network more than 230 community development organizations working in 4,400 urban, suburban and rural communities in all 50 states, the District of Columbia and Puerto Rico. For more information, go to http://www.nw.org/.