Mortgage Assistance Available for Indianapolis-Area Homeowners, Part 1

As we get deeper into the Holiday Season, we’ve been reflecting on the current state of the economy and how it is affecting our fellow Hoosiers. While signs do seem to point to a gradual recovery, many Indianapolis area residents are still in jeopardy of losing their homes to foreclosure. The statistics tell the story.

According to a report from the FDIC, “Foreclosure Statistics: Homeowners Facing Foreclosure“:

  • 1 out of every 200 homes will be foreclosed upon.
  • 556 out of 7032, or 7.9%, current Indianapolis homes for sale are foreclosures, according to the Indiana Association of REALTORS®.
  • More than 6 in 10 homeowners delinquent in their mortgage payments are not aware of services that mortgage lenders can offer to individuals having trouble with their mortgage.

This last statistic is the most concerning to us. It reflects the common reaction of many homeowners facing financial difficulty, which is to panic, freeze up, and do nothing when faced with potential eviction rather than take proactive action to find some help. Whether this is due to embarrassment or just a lack of information, the results could be the loss of their home. But this does not have to happen. HELP IS AVAILABLE TO INDIANA HOMEOWNERS FACING POSSIBLE EVICTION, on both a federal and state level.

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Nationally, the Obama Administration’s Making Home Affordable Program (MHAP,) an official program of the Departments of the Treasury and Housing and Urban Development (HUD,) is a critical part of the effort to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure. A variety of programs under the MHAP umbrella address homeowners’ individual needs, including:

  • Home Affordable Modification Program (HAMP) – If you are having a tough time making your mortgage payments for reasons not related to unemployment, you may qualify for HAMP, which will lower your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable.
  • Principal Reduction Alternative (PRA) – Designed to help homeowners whose homes are worth significantly less than they owe by encouraging banks, mortgage companies and investors to reduce the amount you owe on your home.
  • Second Lien Modification Program (2MP) – you may be eligible for a modification or principal reduction on your second mortgage under 2MP if your primary mortgage was permanently adjusted under HAMP. 2MP is designed to work in tandem with HAMP to provide a comprehensive solution for homeowners with second mortgages.
  • FHA Home Affordable Modification Program (FHA-HAMP) – If you have a loan that is insured or guaranteed by the Federal Housing Administration (FHA), you may be eligible for a program through that government agency such as FHA, VA and USDA to lower your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable.
  • Veteran’s Administration Home Affordable Modification (VA-HAMP) – If you have a loan that is insured or guaranteed by the Department of Veterans Affairs (VA), you may be eligible for a program similar to HAMP.
  • Home Affordable Unemployment Program (UP) – If you are having a tough time making your mortgage payments because you’re unemployed, you may be eligible for UP, which provides a temporary reduction or suspension of mortgage payments for at least three months while you seek re-employment.

For more information about any of these programs, including eligibility requirements for each, visit the Making Home Affordable website.

On Friday, we will take a look at Homeowner Assistance Programs available through the State of Indiana.

Whether you are having difficulty with your mortgage or not, you need to maintain your home’s infrastructure to keep your family safe and healthy. As the recent weather (three straight days of cold rain and snow!) indicates, winter is here. If your furnace, heat pump, or central heating system is giving you trouble, give us call at 317-639-1111 for prompt, reliable emergency repair service in Noblesville, Greenwood, Westfield, or anywhere in the metro Indianapolis area. We are here to help 24/7, every day of the year. for more information about our services, visit the Thiele Heating & Air Conditioning website.