On March 26, The Obama administration announced adjustments to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) program to help homeowners struggling to meet their mortgage obligations.  The adjustments are designed to help three groups: unemployed homeowners who can’t make their mortgage payments; underwater homeowners; and homeowners behind on their payments and looking for loan modifications.


If you are unemployed, these new adjustments can help you get three to six months of reduced payments while you’re looking for a new job.  During this time, your payments will be reduced to 31% of your current gross monthly income. 


If you owe more on your home than it’s worth (you’re an underwater homeowner), as long as you’re current on your mortgage payments, you may be eligible for a new FHA refinance option that will let you refinance your mortgage into a new FHA- insured loan.  The loan would be no more than 115 percent of your home’s current value, and the difference between the original loan balance and the new balance will slowly be forgiven if you stay current on your payments for three years.


If you’re behind on your payments and looking for a mortgage modification, you may be eligible for mortgage principal reductions.  Traditionally, lenders have simply offered lower interest rates, but under the new guidelines, lenders who reduce mortgage principal balances may receive higher financial incentives.

These program changes are expected to go into effect in the fall. 


For more info, check out http://makinghomeaffordable.gov/pr_03262010.html