In response to the housing crisis, the Obama Administration in early 2009 launched Making Home Affordable (MHA), a joint program of the U.S. Department of the Treasury and the Department of Housing and Urban Development (HUD) to help struggling homeowners avoid foreclosure.
Since its inception, MHA has helped homeowners avoid foreclosure by providing a variety of solutions to modify or refinance their mortgages, get temporary forbearance if they are unemployed, or transition out of homeownership via a short sale or deed-in-lieu of foreclosure.
The cornerstone of MHA is the Home Affordable Modification Program (HAMP), a program that provides eligible homeowners the opportunity to reduce their monthly mortgage payments to more affordable levels. Since its launch, MHA has been expanded to include resources to help homeowners who are unemployed, “underwater” on their loan (those who owe more on their home than it is currently worth), or struggling with a second lien. It also includes options for homeowners who would like to transition to a more affordable living situation through a short sale or deed-in-lieu of foreclosure. MHA includes several additional programs to help homeowners refinance or address specific types of mortgages, in conjunction with the Federal Housing Administration (FHA), the United States Department of Agriculture (USDA), and the Department of Veterans Affairs (VA).