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Constituent Services
Help for HomeownersThe housing crisis which began in 2006 continues to impact our economy. I know that Washington families are struggling to make ends meet, and some are falling behind on their mortgage payments or on the brink of foreclosure. It is critical that we stabilize the housing market, which is why I have consistently fought on the side of the American homeowner, and I have supported foreclosure prevention programs such as the Hope for Homeowners program in the Helping Families Save their Home Act, or the Making Homes Affordable loan modification program. I know that these programs are not perfect, and at times it can be frustrating to get through the application process. If you are looking to refinance your home, or modify a loan, I want you to know that there is a wealth of free, informative resources that the government provides to assist you in this process. This is why I've compiled descriptions of available options below, eligibility requirements, and links to more information about how to apply. I'm working hard in the other Washington to support the federal foreclosure prevention initiatives that help homeowners like you stay in your homes.
Making Homes AffordablePresident Obama announced the Making Home Affordable (MHA) program on February 18, 2009 in an effort to help homeowners who are having difficulty making their mortgage payments and want to avoid foreclosure. While the federal government provides incentives to encourage lenders to modify mortgages, participation in the MHA program is entirely voluntary. There are two separate programs within MHA to assist borrowers, the Home Affordable Refinance Program (HARP) and the Home Affordable Modification Program (HAMP). HARP:
For more information about HARP please visit: http://www.makinghomeaffordable.gov/refinance_eligibility.html HAMP encourages lenders to provide mortgage modifications for troubled borrowers in order to reduce borrowers' monthly mortgage payments to no more than 31% of their monthly income. To be eligible for HAMP:
For more information about HAMP please visit: http://www.makinghomeaffordable.gov/modification_eligibility.html HOPE for Homeowners:Congress created the HOPE for Homeowners program with the help of Senator Cantwell in July, 2008 and it will remain in place until September 30, 2011. HOPE for Homeowners refinances mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by the Federal Housing Authority. If approved, the principal balance of borrowers' mortgages would be reduced to 90% of the value of their property, and the borrower would receive a new fixed-rate mortgage from the Federal Housing Authority that is no more than 31% of their monthly income. To be eligible for HOPE for Homeowners:
For more information about Hope for Homeowners please visit: http://www.hud.gov/hopeforhomeowners/pressfactsheet.cfm Loan Workout Options between Borrowers and Lenders:When a homeowners falls behind on behind on their mortgage there are various options that lenders can employ as an alternative to foreclosure. These options include repayment plans, principal forbearance, principle forgiveness, interest rate reductions, and extended loan terms. For more information about these options please visit: http://www.hud.gov/offices/hsg/sfh/econ/loanworkoutsolutions.cfm or contact your private lender directly. Foreclosure Prevention ResourcesNavigating through the process of applying for a loan modification or refinancing a home can be difficult. The Federal government, non-profit organizations and state agencies have organized free counselors with a wealth of information regarding eligibility requirements. These counselors are available to assist borrowers through the loan modification process and can work with lenders to ensure homeowners are treated fairly.
Washington State Department of Financial Institutions U.S. Department of Housing and Urban Development Hope Now Homeownership Preservation Foundation Neighbor Works America
Federal Reserve Consumer Help National Consumers League Help With My Bank Neighborhood Assistance Corporation of America The Mortgage Professor's Web Site
The Washington State Bar Association: The Bar Association is pleased to offer moderate income homeowners free legal assistance through the Home Foreclosure Legal Aid Project. The project is now accepting referrals of homeowners from federally approved foreclosure prevention agencies around the state. To locate a foreclosure prevention agency in your community please call: Fair Housing Center of Washington: Northwest Justice Project King County Bar Association
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