In order to decrease foreclosures and help stabilize the economy, the Making Homes Affordable Act was passed a few years ago. There are several different programs available to homeowners depending upon their circumstances and specific needs.

For homeowners who are struggling but still up to date on their mortgage payments, the Home Affordable Refinance Program (HARP) can assist. The HARP program helps when a home has decreased in value to a degree that traditional refinancing programs are unavailable. Homeowners who are able to refinance their homes under HARP are able to lower their monthly mortgage payments.

Basic requirements that must be met in order to pursue refinancing under HARP.

Steps for you to take to begin the HARP refinance process.

If this program appeals to you, there are some steps you can take to get the process started.

1. You need to know if your loan is a Freddie Mac or Fannie Mae loan. Click on the link and follow the instructions at the Freddie Mac or Fannie Mae website to determine if your loan qualifies.
2. Contact your current mortgage lender and ask if they participate in HARP. If they do not, and cannot give you the name of a lender that does, you can go here and find a list of mortgage companies in your state that participate in HARP. The list is not comprehensive, but it is a good place to start.
3. Obtain information as to interest rates and fees from several different lenders to be sure you get the best rate.
4. HUD provides counselors who can help you put together a plan that will help you get relief from an unmanageable home loan. This service is provided free of any charge. You can contact a housing counselor at (888) 995-HOPE or (888) 995-4673. They are available seven days a week, 24 hours a day, 365 days a year. To find out information about HUD counselors in your state, go here.