The government program Making Home Affordable, which has assisted over one million U.S. homeowners, was originally scheduled to lapse at the end of 2013. However, the U.S. Treasury announced on May 30 that it is extending the program for two more years. Accordingly, the program is now scheduled to continue until at least December 31, 2015.
Making Home Affordable includes a series of programs created to help distressed homeowners who are struggling to meet their mortgage loan obligations. These programs include (a) the Home Affordable Modification Program (“HAMP”), which allows a qualified homeowner to modify their primary mortgage loan to lower their monthly mortgage payments, (b) the Second Lien Modification Program, which allows a qualified homeowner to similarly modify their second mortgage loan, and (c) the Home Affordable Foreclosure Alternative (“HAFA”), which allows qualified homeowners complete a short sale of their property a receive forgiveness of any deficiency between the sales price of their home and their mortgage balance and which also provides potential relocation assistance.