Are you in danger of foreclosure? Don't be the next victim.

A new Federal program offers alternatives to 7 to 9 million people who are in danger of foreclosure.

Under the Federal Government’s Making Home Affordable Program, two alternatives are now available to many distressed Carbon County homeowners. They are the Home Affordable Modification Program (HAMP), and the Home Affordable Foreclosure Alternatives Program (HAFA). HAMP offers opportunities to modify or refinance your mortgage to make your monthly payments more affordable. HAFA is for homeowners who are interested in a short sale or deed-in-lieu of foreclosure.

By August 1, all participating HAMP mortgage servicers will offer extra help for unemployed homeowners struggling to make their monthly mortgage payments. The Unemployment Program will offer homeowners a forbearance period to temporarily reduce or suspend their monthly mortgage payments while they seek re-employment.

The minimum forbearance period is three months, although a mortgage servicer may extend it depending on the investor and regulator guidelines. If a homeowner becomes employed during that time, the forbearance period will end and the homeowner will be evaluated for a HAMP mortgage modification. Unemployment benefits will no longer qualify as income for the mortgage modification program.

During the forbearance period, a homeowner's monthly mortgage payment must be reduced to no more than 31 percent of his or her gross monthly income. The servicer can decide to temporarily suspend payments in full. The payment amount and due dates will be decided by the servicer depending on investor and regulator guidelines.

To qualify, a homeowner must meet the following eligibility criteria:

• The mortgage must be a first lien mortgage, originated on or before January 1, 2009, and the unpaid principal balance must be equal to or less than $729,750 for a one-unit property.
• The property must be the homeowner's principal residence.
• The mortgage has not been previously modified through a HAMP.
• The homeowner was ineligible for a HAMP.
• The homeowner is either behind on payments—but not by more than three consecutive months, or it is reasonably foreseeable that the homeowner will fall behind.
• The total monthly mortgage payment is greater than 31 percent of the homeowner's gross monthly income. If the payment is less, it is up to the servicer's discretion if they will offer the program to the homeowner.
• The homeowner will be unemployed at the start of the forbearance period, and is able to document this because they will be receiving unemployment benefits in the month the forbearance period begins—even if the benefits expire before the forbearance period ends.
• A mortgage servicer may require that, based on investor and regulator guidelines, homeowners have received at least three months of unemployment benefits before he or she begin a forbearance period.

There is no cost to apply to the Unemployment Program, although late charges may accrue while the homeowner is being evaluated for the program or in the program. A mortgage servicer may not collect late charges from the homeowner while he or she is still in the forbearance period.

Servicers may not initiate foreclosure proceedings or conduct a foreclosure sale while a homeowner is being evaluated for the Unemployment Program or in the forbearance period.

To determine if you qualify for the Unemployment Program, contact your mortgage servicer. You should learn your eligibility within ten days of submitting complete documentation to your servicer.

If you have any questions after speaking with your servicer, or need assistance applying to the program, call 1-888-995-4673 to speak with a HUD-approved housing counselor for free.

Details, videos, and scam warnings are available at: makinghomeaffordable.gov.

Alan Katz