In 2009, the federal government unveiled the Making Home Affordable (MHA) initiative to help struggling homeowners stay in their houses and avoid foreclosure. One of the components of the MHA initiative was the Second Lien Modification Program (2MP). The 2MP program modified or eliminated a borrower's existing second lien, like a second mortgage, HELOC, or home equity loan. However, the programs under MHA—including 2MP—ended on December 31, 2016.
While the 2MP program terminated at the end of 2016, other programs—like the Fannie Mae and Freddie Mac Flex Modification Program, as well as proprietary (in-house) modification programs and other loss mitigation options—now exist to help struggling homeowners avoid foreclosure. Also, your state might have a Hardest Hit Fund program that, for example, pays off or reduces the amount owed on a first or second mortgage.
One program under the Making Home Affordable initiative that's still available is the Home Affordable Refinance Program—or "HARP"—which remains in effect until December 31, 2018. HARP is the mortgage refinance option under the MHA initiative. With HARP, you might be able to:
(To learn more about that program, see The Home Affordable Refinance Program.)
If you’re struggling with your mortgage payments and facing a possible foreclosure, contact your mortgage servicer or a HUD-approved housing counselor at 888-995-HOPE (4673) as soon as possible. (Learn more about what HUD-approved housing counselors do.)