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Frequently Asked Questions

Questions

Answers

What is the MHA program?
MHA stands for Making Home Affordable and is the government's program to help up to 7 to 9 million US homeowners avoid foreclosure by modifying the terms of their loan or refinancing their current mortgage. Here is a summary of MHA.
What is HASP?
HASP stands for Homeownership Affordability and Stability Plan. The MHA program is part of HASP.
What's the difference between a mortgage lender and a mortgage servicer?
A mortgage lender is the institution you work with to get a loan. A mortgage servicer is the financial institution that is responsible for the administration of your mortgage loan. Your mortgage servicer receives your payments, keeps track of the principal and interest on your loan, and might set up an escrow account for you. You can find out your mortgage servicer by reviewing t your mortgage bills or coupons. Some institutions are both mortgage lenders and mortgage servicers. Other institutions are just mortgage lenders, and they sell your loan to a mortgage servicer who then manages it.
Does your solution guarantee that I will get mortgage relief if it says I'm eligible?
No. Mortgage Relief Online is intended to help US homeowners understand the Making Home Affordable program guidelines. We will attempt to determine if you meet the guidelines for mortgage relief under MHA, but your mortgage servicer will ultimately be responsible for deciding whether you qualify for a loan modification or refinancing.
What should I be aware of when researching my mortgage options?
Be sure to avoid scams. There are many companies out there that are trying to take advantage of homeowners. You do not have to pay anyone for help. If there's a fee involved, it's probably a scam. Mortgage Relief Online is a free service. Be sure to see the reputable partners involved in Mortgage Relief Online.
If you determine I may qualify for refinancing, how do I know that's a good option for me?
Your servicer must furnish you with a "good faith estimate" that lists the details of your refinanced mortgage. You should compare this estimate with the current terms of your loan to determine if you are comfortable with the new loan.
What should I expect when the certified professional counselor calls me?
The objective of the call with a Money Management International certified professional counselor is to help you determine the best long-term solution for you. The counselor will help you identify budget concerns as well as prepare your case for your mortgage servicer.
If you determine I may qualify for refinancing do I have to refinance immediately?
No. If and when you refinance is up to you. However, the Home Affordable Refinance part of the MHA program expires on June 10, 2010.
If I have mortgages on more than one home, can I modify them all?
No, you can only modify your primary residence under the MHA program.
Why would my mortgage servicer want to modify the terms of my loan?
The mortgage servicers along with the United States Department of The Treasury are working to help as many Americans as possible preserve home ownership.
How is net present value (NPV) used in the Making Home Affordable plan?
Your mortgage servicer will be required to use a NPV test to compare the present value of your mortgage's cash flow with a loan modification and without a loan modification. If this test determines that the present value of the expected cash flow is greater with a loan modification, then the NPV test is said to be positive and your servicer must modify your loan providing there is no fraud or contract prohibition. Only your servicer can make this final NPV determination.
What type of document do I need to prove that I've experienced a financial hardship?

You will need to document a financial hardship representing that you do not have sufficient liquid assets to make the monthly mortgage payments by completing a Home Affordable Modification Program Hardship Affidavit (sworn statement). You will also need to provide the required income documentation. The income documentation may not be more than 90 days old (as of the date the servicer is determining HMP eligibility).

Hardship Affidavit

Every borrower and co-borrower seeking a modification, whether in default or not, must sign a Hardship Affidavit that attests to and describes one or more of the following types of hardships:

  1. A reduction in or loss of income that was supporting the mortgage.
  2. A change in household financial circumstances.
  3. A recent or upcoming increase in the monthly mortgage payment.
  4. An increase in other expenses.
  5. A lack of sufficient cash reserves to maintain payment on the mortgage and cover basic living expenses at the same time. Cash reserves include assets such as cash, savings, money market funds, marketable stocks or bonds (excluding retirement accounts and assets that serve as emergency fund – generally equal to three times the borrower's monthly debt payments).
  6. Excessive monthly debt payments and overextension with creditors, e.g., the borrower was required to use credit cards, a home equity loan, or other credit to make the mortgage payment.
  7. Other reasons for hardship detailed by the borrower.

Note: You are not required to have the Hardship Affidavit notarized.

Which mortgage servicers are participating in Making Home Affordable?
The following is a list of servicers who are participating in Making Home Affordable. However, even if your mortgage servicer is not listed here, you may still be able to receive mortgage relief using this service.
  • Aurora Loan Services LLC
  • Bank of America, N.A.
  • Carrington Mortgage Services, LLC
  • Chase Financial LLC
  • CitiMortgage, Inc.
  • Countrywide Home Loans Servicing LP
  • GMAC Mortgage LLC
  • Green Tree Servicing LLC
  • Home Loan Services, Inc.
  • Nationstar Mortgage LLC
  • Ocwen Financial Corporation, Inc.
  • Saxon Mortgage Services
  • Select Portfolio Servicing
  • Wells Fargo Bank, NA
  • Wilshire Credit Corporation
How is the loan to value (LTV) considered in the Making How Affordable Refinance Program?

The Making Home Affordable Refinance Program eligibility has expanded to include borrowers who are current with their mortgage, owned by Fannie Mae or Freddie Mac and have a LTV of up to 125 percent . Previously, borrowers with a LTV of 105 percent or less could qualify for refinancing under the Making Home Affordable program.

For example, a borrower who owns a home appraised at $100,000 could have a mortgage of up to $125,000 and still qualify. Previously, that same borrower could only have owed up to $105,000 on this mortgage.

The loan-to-value (LTV) ratio expresses the amount of a first mortgage as a percentage of the total appraised value of real estate.

How does a mortgage modification affect the borrower's FICO score?
FICO credit scores are calculated from the information in consumer credit reports. Whether a loan modification affects the borrower's FICO score depends on whether and how the lender chooses to report the event to the credit bureau, as well as on the person's overall credit profile. If a lender indicates to a credit bureau that the consumer has not made payments on a mortgage as originally agreed, that information on the consumer's credit report could cause the consumer's FICO score to decrease or it could have little to no impact on the score

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