Homeowners facing foreclosure need to act quickly to take advantage of President Obama’s Making Home Affordable program (MHA) before its expected expiration on December 31, 2016.
The Program, established in 2009 to assist the millions of homeowners facing foreclosure, was set to expire in 2015 but was extended to the end of 2016. Under the guidelines, homeowners whose loans are not owned by Fannie Mae or Freddie Mac are allowed to seek assistance from their lender with refinancing, loan modifications, short sales, deeds-in-lieu, and unemployment aid.
The program has been a welcome relief to those distressed homeowners who fell victim to unscrupulous practices by banks and the greed of Wall Street during the financial crisis back in 2008. Millions of homeowners applied for, and were granted relief under the MHA, allowing them to stay in their homes.
Recent Decline of Applications for MHA Program
According to a June 2016 article by the Huffington Post, applications for the MHA program have been on the decline due to a stable housing market and lower unemployment rate. While this is great news for many, RealtyTrac reported in May of 2016 that there were 816,913 properties that were at auction, repossessed by the banks, or in default. In addition, there are still millions of homeowners at risk for default, creating a clear need for continued assistance.
Heed the MHA Program Deadline
With the upcoming election in November, there is still considerable uncertainty over whether the MHA program will continue or not. The Obama administration has yet to extend the program through 2017, but homeowners are still able to apply for assistance.
Under the current guidelines, distressed homeowners have until December 31, 2016 to apply for alternative foreclosure assistance through the MHA program. After that deadline, homeowners will be limited to seeking assistance from their lender/service in-house programs which may not be as comprehensive or affordable.
Whether you are currently facing a foreclosure or are in jeopardy of defaulting on your loan which could lead to a foreclosure, it is extremely important for you to seek assistance to keep you and your family in your home. There are many laws and rulings that could affect the outcome of your situation, and only an experienced foreclosure attorney with knowledge of up-to-date court rulings, laws, and information on program relief should be consulted to handle your case.