Last Updated on March 26, 2023 by Anne-Sophie Reinhardt
Single-parent families can receive mortgage relief through various programs. When unemployment rates skyrocketed, and the recession hit, the Obama Administration implemented various programs to prevent people from losing their homes.
This article discusses single-parent assistance services and relief programs available to help with mortgage payments.
Single-Parent Mortgage Relief Programs
The Home Affordable Modification Program (HAMP)
HAMP is a program that allows single moms to get the support they need before their home is foreclosed. A family with trouble paying their bills will have their mortgage rates lowered to 31% of their income through this mechanism. They may also reduce mortgages by up to $1000. Call (888) 995-4673 if you have questions about the program.
Principal Reduction Alternative (PRA)
PRA is a method of splitting an unpaid principal balance on a home into different accounts to minimize it. There is a principal account that pays interest and a non-interest account. If the homeowner makes sufficient contributions over the course of three years, the non-interest account is reduced to zero. By calling (888) 995-4673, you can get more details.
Second Lien Modification Program (2MP)
Individuals who have permanently converted to the HAMP mortgage modification program and now have a second mortgage on their home are eligible for 2MP. This allows for a principal reduction on the second mortgage. For more details on single mother benefits, call (888) 955-4673.
Home Affordable Refinance Program (HARP)
HARP is a service that helps homeowners who have lost equity in their homes to have their mortgages reevaluated. They may lower the interest rate and payments or grant a shorter-term loan due to the procedure. Contact your current mortgage lender or any HARP lender for more information. To learn more about single mom grants, call (800) 7-FANNIE or (800) FREDDIE.
Treasury/ FHA Second Lien Program – Obama Mortgage Relief Program
This is a change to the Home Affordable Program, also known as the Obama Mortgage. This was previously only open to first-time homebuyers. The software will also be used by those who have a second mortgage. They can choose to have their payments lowered or pay off the loan in one lump sum. To learn more about mortgage assistance for single mothers, call (866) 939-4469.
Home Affordable For Unemployment Program (UP)
This is available to people who have recently lost their jobs. The program may either avoid all monthly mortgage payments or reduce them to 31 per cent of gross income for up to a year. To learn more about single-parent assistance, call (888) 995-4673.
Emergency Homeowners’ Loan Program (EHLP)
This is a state-by-state program that differs. There are funds available to assist individuals who need a diminishing balance, deferred payments, or assistance in paying off debts such as unpaid taxes or insurance. HUD offers the service, and you can obtain more information by calling (202) 708-1112 or visiting the nearest HUD office.
Home Affordable Foreclosure Alternatives (HAFA)
Via a short sale or deed-in-lieu-of-foreclosure, HAFA provides people $10,000 to relocate and helps them move out from under a house they no longer want. You can get more details by calling (888) 995-4673.
Find out how these single-mother assistance services will assist you if you’re worried about losing your house. However, if this page does not contain everything you’re looking for, please check out our housing assistance for single moms page for more information.