With the recent news reports surrounding the President’s plan to end the foreclosure crisis, there is some confusion over the different programs available for homeowners. In general, there are two programs that have received a lot of attention that people often mistake for one another.
The Making Home Affordable Program (MHA) is the comprehensive plan developed to help stabilize the housing market and offer assistance to homeowners. It offers wide range of solutions like help with refinancing qualifications, underwater mortgage assistance, mortgage debt help for the unemployed and finding affordable modification options. This program can be viewed as the umbrella by which other programs are covered and operated. The MHA was also recently extended through December of 2013 in order to reach more consumers in need.
The Home Affordable Modification Program, or HAMP, is a specific program designed to help homeowners qualify for loan modifications. Often confused with the MHA, this program is a sub-section of the MHA program and only offers helps for securing loan modifications. This program targets homeowners who are in need of lower monthly payments, but may not be able to refinance their mortgage.
Also confused with the MHA, the Home Affordable Refinance Program offers homeowners help in qualifying for refinancing options. The HARP is also a sub-section of the MHA and was designed specifically to benefit those looking to refinance their home and lower their monthly payments.