Housing & Urban Development (HUD) Avoiding Foreclosure 

Making Home Affordable
A catalyst for the mortgage industry to provide more affordable and sustainable assistance to struggling homeowners to prevent avoidable foreclosures

• Homeowners may modify their existing loan under the Home Affordable Modification Program (HAMP). The program has been expanded to offer assistance to homeowners with second liens or who are struggling because they are unemployed or “underwater” (owe more on their home than it is currently worth) 
• Also includes the Home Affordable Foreclosure Alternatives Program (HAFA) which has streamlined the process for homeowners seeking a short sale or deed-in-lieu of foreclosure. Under the new guidance, servicemembers who cite a PCS order as the basis for their financial hardship when asking for help under HAFA will now be eligible even if their income has not decreased

Consumer Fraud Alert
Homeowners struggling to make their mortgage payments should beware of con artists and scams that promise to save their homes and lower their mortgage debt or payments. If you are struggling to pay your mortgage and are seeking a mortgage modification, keep the following tips in mind:

• You can apply to the federal Home Affordable Modification Program (HAMP) on your own or with free help from a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD). Applying to the program is always free. For more information on how to apply, call the Homeowner’s HOPE™ Hotline at 888-995-4673 or visit http://www.makinghomeaffordable.gov/
• Only your mortgage servicer has discretion to grant a loan modification. Therefore, no third party can guarantee or pre-approve your HAMP mortgage modification application
• Beware of anyone seeking to charge you in advance for mortgage modification services – in most cases, charging fees in advance for a mortgage modification is illegal
• Paying a third party to assist with your HAMP application does not improve your likelihood of receiving a mortgage modification. Accordingly, beware of individuals or companies that ask you for payment and tout success rates or claim to be “experts” in HAMP
• If an individual or company claims to be affiliated with HAMP or displays a seal or logo representing the U.S. government in correspondence or on the Web, you should check the connection by calling the Homeowner’s HOPE™ Hotline
• Beware of individuals or companies that offer money-back guarantees 
• Beware of individuals or companies that advise you as a homeowner to stop making your mortgage payments or to not contact your mortgage servicer