The Making Home Affordable Program Is Set To Expire
Lydia Aguayo, real estate broker with Keller Williams Realty in Downey.
The Making Home Affordable Program is set to expire on December 31, 2016.
What Is The Making Home Affordable Program?
In early 2009, Treasury launched the Making Home Affordable® Program (MHA) to help struggling homeowners avoid foreclosure. Since its inception, MHA has helped homeowners avoid foreclosure by providing a variety of solutions to modify or refinance their mortgages, get temporary forbearance if they are unemployed, or transition out of homeownership via a short sale or deed-in-lieu of foreclosure.
In addition to allowing homeowners to either lower their payments or sell under a short sale, homeowners have benefited from various federal and state income tax relief and some easing on bad credit ratings.
The Program Would Have Already Expired
The Program was originally set to expire on December 31, 2015. However, due to its success, the Program was extended for an additional year. No extension has been announced at this time.
Also, with the improved housing market and improvement employment picture since that of 2009, “…the number of applications under the MHA program have declined overall in recent years due to both the stabilizing housing market and drop in the unemployment rate. At the end of 2015, RealtyTrac reported that there were 1,083,572 properties with foreclosure filings nationwide—a significant drop from the peak of 2,871,891 properties with foreclosure filings in 2010. As of May 2016, RealtyTrac reported a total of 896,913 properties in default, at auction or repossessed by the banks.
What Will Be Left?
Now due to expire on December 31, 2016, it is not known if it will be extended. Homeowners may be left to “fin for themselves” without governmental regulations.
What is advisable is that if a homeowner is struggling with their mortgage payments, it may be wise to contact their mortgage lender as soon possible and/or contact www.makinghomeaffordable.gov or call 888-995-HOPE well before December 31, 2016.