What many people refer to as the “Obama Plan” is really called the Making Home Affordable Program. This program is part of a plan that President Obama announced in February 2009 to help combat foreclosures. It is designed to help homeowners reduce mortgage payments to a level that is affordable now and in the future.

There are two main components of the program: 

• Home Affordable Refinance (HARP)
• Home Affordable Modification (HAMP)

HAMP is the program that is relevant to you if you are already delinquent or are at risk of default and foreclosure.  This program is designed to prevent foreclosures by reducing monthly mortgage payments.

In general, you may be eligible if:

• You are the owner-occupant of a 1-4 unit home.
• The amount you owe on your first mortgage is equal to or less than $729,750.
• Your mortgage was originated on or before January 1, 2009.
• The payment on your first mortgage (including principal, interest, taxes, insurance and homeowners association dues) is more than 31% of your current gross (pre-tax) income, and
• You have a mortgage that is not affordable.

Important:

If your mortgage loan is owned or guaranteed by Fannie Mae or Freddie Mac, your servicer MUST participate in HAMP.  If your mortgage loan is NOT owned or guaranteed by Fannie Mae or Freddie Mac, your servicer’s participation is optional.

If you are interested in the HAMP program, go to www.MakingHomeAffordable.gov to access:

1)  Self-assessment and borrower tools to:

• Determine basic eligibility
• Estimate a possible payment reduction
• Check debt-to-income ratio
• See if a loan is owned by Fannie Mae or Freddie Mac suing loan look-up tools.

2)  Use the “checklists” to start gathering the information that you will need to speak to your mortgage servicer or a housing counselor.

Community Action Agency
 (800) 491-0004

Jackson Affordable Housing
(517) 788-4626

Community Action Agency
 (800) 438-1845

Community Action Agency
(800) 750-9300