A Comprehensive Description of Home Affordable Refinancing, a Federal Loan Modification Program

The Home Affordable Refinancing is part of Obama’s Making Home Affordable Program which aims to provide help to refinance mortgage rates of some qualified American homeowners; it is a federal loan modification program for troubled borrowers who are current in their monthly loan payments but are unable to refinance a lower interest rate due to the decreasing home value of his or her property. Moreover, it is available for borrowers who have mortgages under Fannie Mae or Freddie Mac only. Once your loan has been modified, it may result in a decreased monthly principal or interest payments which places borrowers in a better position to afford their mortgages. It may also convert a risky loan structure into a more stable one to avoid foreclosure filings in the future especially since home prices continue to fall as the US economy remain in this condition.To apply for this federal loan modification program, the home with which you are seeking to refinance must be a one to four unit residential property, the mortgage must be owned by Fannie Mae or Freddie Mac, you must be current on your monthly mortgage payments which means that you are not behind more than 30 days on your loan payments within one year, and you must own only one residential property under one mortgage.When your loan has been modified or your mortgage payment has reduced, make sure that you pay off your outstanding balance to avoid receiving a notice permanently. Your lenders can file for foreclosure and proceed with a public auction once you begin to make default payments again, especially when you have been given the opportunity to refinance your current mortgage and pay off the outstanding debt balance.If you have questions about the Home Affordable Refinancing program or if you want to take part in one of the free seminars regarding the different federal loan modification programs of the Obama administration, contact the Housing and Urban Development Office immediately. You may also talk to your mortgage lender and service provider to know if you are qualified for this type of mortgage help. And to know the full detail on the HUD’s home affordable refinancing options in your respective state, browse through the selling guide announcements for mortgage lenders, investors, and servicers in your area.