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For many American families, the threat of foreclosure and financial instability is very real. During times of economic uncertainty or a housing crisis, homeowners can struggle to keep up with their mortgage payments, especially when their mortgaged property has decreased in market value. Fortunately, there are government-backed programs designed to provide critical housing assistance and preserve affordable housing options across the country.
One such program was the Home Affordable Refinance Program (HARP)—a federal housing assistance initiative aimed at helping homeowners refinance their mortgage even if they owe more than the current market value of their home. This allowed borrowers to access more manageable payments and avoid foreclosure, reducing risk for both lenders and homeowners.
HARP was developed to provide assistance to borrowers who remained current on their mortgage payments but found themselves" underwater"—meaning they owed more on their loan than their property was worth. In many areas affected by falling home prices, this scenario is common, placing millions of families at risk of foreclosure, eviction, or financial distress.
By refinancing through HARP, qualified homeowners were able to:
The overarching goal was to preserve affordable housing, reduce foreclosures, and maintain stability in local neighborhoods, especially in areas hardest hit by the foreclosure crisis.
While it was in effect, HARP expanded access and made the program more flexible for homeowners in need:
These enhancements were designed to reduce the number of real estate owned (REO) properties, avoid foreclosure auctions, and provide pathways for homeowners to avoid judicial or nonjudicial foreclosure proceedings.
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HARP was intended for responsible borrowers who:
Learn more about the HARP program from Wikipedia.
It's not exactly breaking news that the HARP program has ended. It expired officially in 2018. But as housing costs continue to rise and economic uncertainty persists, more families are finding it difficult to manage their mortgages. Whether due to job loss, medical bills, or rising interest rates, the risk of foreclosure is a growing concern in many communities. Fortunately there are refinancing options and housing assistance programs other than HARP that are available to help borrowers stay in their homes, avoid foreclosure, and regain financial stability.
The foreclosure process begins when a lender takes legal action to recover the balance of a loan from a homeowner who has missed multiple payments. This can result in either a judicial foreclosure, which involves court proceedings, or a non judicial foreclosure, which occurs without court intervention depending on the state laws. In both scenarios, the property may eventually be sold to the highest bidder at a foreclosure sale or auction.
Once the process begins, the owner is at significant risk of losing their property, and in many cases, becoming homeless. This makes early intervention through refinancing or housing assistance programs critical.
Learn more: The Foreclosure Process and Your Options
Refinancing is one of the most effective ways for families facing a housing crisis to reduce their monthly payments, adjust the terms of their loan, and ultimately avoid foreclosure. By securing a new loan with better terms—such as a lower interest rate or a longer repayment period—borrowers can make their mortgage more affordable and manageable.
Some of the benefits of refinancing for mortgage relief include:
Multiple local, state, and federal services exist to provide assistance for struggling homeowners. These programs offer free counseling, training, and even help file paperwork to begin the refinance process.
Notable options include:
Homeowners are encouraged to seek support early. Delaying help often reduces the number of resources available and can lead to foreclosure, eviction, and the sale of the property.
If you're behind on your mortgage payments, or worried about your ability to continue paying, take these steps:
In recent months, the average number of homeowners seeking mortgage help has surged, highlighting the urgent need for widespread awareness. For many, refinancing is a powerful tool to keep their homes and maintain ties to their community. It also helps prevent properties from becoming bank-owned or sold to the highest bidder, which can destabilize neighborhoods and reduce access to housing.
Whether you're an owner worried about foreclosure or a family in search of stability, don't wait until it's too late. Many programs offer free services and immediate assistance to those who seek it.
Facing financial difficulty can be overwhelming, but help is available. If you or someone you know is struggling to make their mortgage payments, reach out today. Contact a local housing counselor, explore government-backed programs, and request a personalized action plan.
Don’t let the threat of foreclosure determine your future—take action now and regain control of your property, your finances, and your peace of mind.
If you’re a homeowner feeling the pressure of high mortgage payments or an unmanageable loan balance, now is the time to seek assistance. Access to free housing counseling and legal process guidance can make the difference between staying in your home or facing foreclosure.
To determine what kinds of foreclosure relief programs you're eligible for, contact a HUD-approved nonprofit housing counselor.Credit.org, for example, offers free services to homeowners looking to refinance or avoid foreclosure. These professionals provide:
Homeowners can also receive training and education on how to manage mortgage payments, understand collateral implications, and protect their homes from foreclosure and eventual sale at auction.
The Consumer Financial Protection Bureau (CFPB) has more information about HUD-approved housing counseling. Learn more from Credit.org about How HUD Housing Counseling Can Help You Get Assistance.
Whether you're already at risk of foreclosure or simply trying to lower your monthly mortgage payment, foreclosure counseling fromCredit.org can offer a lifeline. Foreclosure prevention programs can help families stay in their homes, avoid eviction, and maintain ties to their communities.
Don’t wait until you're facing foreclosure court dates or contact from your lender threatening to foreclose on your property. Early intervention and education are key, but help is available no matter where you are in the foreclosure process. Resources are available to help you stay informed, supported, and on the path to long-term housing stability.
For more information, or to speak with a counselor, contact our nonprofit housing counselors from Credit.org today and take the first step toward financial relief and housing security.
