Many of our clients facing foreclosure are familiar with the Making Homes Affordable Loan Modification Program. It is a program that reduces mortgage payments to no more than 31 percent of the eligible borrower’s pre-tax income. This program was implemented in 2009, for a duration of five years. Last week, U.S. Treasury Secretary, Jacob J. Lew announced that the home assistance programs will be extended until December 31, 2016.
This program has helped over 1.3 million homeowners since 2009, and it is a great option for a homeowner whose property is underwater and can prove financial hardship. In addition to extending this program, HUD is partnering with the Treasury Department to broaden their efforts. The goal is “to help the many hard working families who cannot find affordable rental housing,” said Carol Galante, FHA Commissioner and Assistant Secretary for Housing, at HUD.
There isn’t any doubt the economy has been steadily recovering over the past couple of years, however, it is nowhere close to where it used to be and there are still many families that are in need of financial assistance. It’s reassuring to see that congress and government agencies are aware that there are still many struggling homeowners and are taking steps to help families in need.