As of 2015, some government programs available to help prevent foreclosure include the Making Home Affordable program, Home Affordable Unemployment Program and Emergency Homeowner’s Loan Program, according to U.S. Department of Housing and Urban Development. Other programs include the Principal Reduction Alternative, Home Affordable Modification Program and Second Lien Modification Program.
The Making Home Affordable program helps homeowners avoid foreclosure by lowering their monthly mortgage payments, explains HUD.gov. It also has other benefits, including helping to improve the economy in the United States and providing a more stable housing market. With this program, homeowners can refinance their homes with lower mortgage rates, lowering the monthly payments. The Home Affordable Modification Program also helps to lower monthly payments to 31 percent of the family’s monthly gross income.
Some programs provided by the government help avoid foreclosure for homeowners that are underwater on their mortgages. This means the home’s value is worth less than what the owner owes on the home, notes HUD.gov. For example, the Home Affordable Refinance Program allows families to refinance their homes and hopefully get more affordable mortgage payments to avoid foreclosure.
For unemployed homeowners, there are multiple government programs, including the Home Affordable Unemployment Program and the Emergency Homeowners’ Loan Program, reports HUD.gov. The Home Affordable Unemployment Program allows for temporary holds on mortgages until the homeowners find employment.