Foreclosure Mitigation Programs

Mortgage Programs

We offer mortgage programs to avoid foreclosure, such as the Hardest Hit Fund, the federal Making Home Affordable or Home Affordable Modification Program (HAMP), lender modification programs, and assistance with the National Mortgage Settlement. These provide a number of alternatives to foreclosure.

All of our foreclosure prevention services are free. Alliance is an US Department of Housing and Urban Development (HUD) approved nonprofit agency, and our certified housing counselors are here to help you avoid foreclosure.

Mortgage Programs – Hardest Hit Fund

The first program we review for eligibility is the Hardest Hit Fund. This program offers foreclosure prevention loans to the unemployed, under-employed, and formerly unemployed. If you are unemployed or have lost more than 50% of your income due to changing economic conditions, you may be eligible for one of the Hardest Hit Fund programs. These programs are administered state by state and funded by the U.S. Treasury’s Hardest Hit Fund. The fund provides mortgage payment assistance while you are looking for work or going to school to learn new job skills. Our counselors will assist you to determine if you qualify.

Mortgage Programs – Loan Modifications

Loan modifications change the terms of your mortgage to make the payments more affordable. The best known of these is the federal government’s Making Home Affordable program called HAMP or Home Affordable Modification Program. There are other federal government programs, as well as many lender programs as well.

Mortgage Programs – Home Affordable Modification Program (HAMP)

The federal government program known as the Home Affordable Modification Program is one of several government loan modification programs. Contact one of our counselors for expert advice and assistance.

Mortgage Programs – Private Modification Programs

Many lenders have private loan modification programs that are not associated with government programs, and sometimes they are a better alternative. In fact, most modifications are of the private type.

 Mortgage Programs & Options

These programs help homeowners prevent foreclosure. Many of them are listed here, but new programs, including federal, state and private programs are being introduced frequently. It’s best contact one of our certified counselors to see what your options are, by using the form at the right or calling us today!

The options fall under two general categories, retaining ownership and relinquishing ownership. The major options within each category are listed below within the two columns.

Mortgage Programs

Retain Ownership Options

Hardest Hit Fund:

This varies by state. Some offer up to 36 months of your mortgage payments made while you are looking for work or going to school to learn new job skills.

Requirements: Must have a qualifying hardship, usually involving unemployment, under-employment, or recently re-employed.

Loan Modification:

The lender may reduce the interest rate, monthly payment, extend the term of the loan, or even reduce the principal balance, individually or in any combination.

Requirements: Must have a positive budget, steady employment, and a good reason must exist for modification.


Obtain a new mortgage through conventional or special programs that are available.

Requirements: Terms vary widely, but credit performance must be good, with possible exception of late mortgage payments due to rate increases.

Look at our refinance calculators here or here, check our Refinance Mortgage publication, and check our credit counseling offer.

Reverse Mortgage:

Obtain a reverse mortgage to replace the existing one.

Requirements: Must be 62 years old or older, substantial equity in home, usually 50% or more of value. No credit check.

See more reverse mortgage information.

Foreclosure Prevention Funds:

A charitable or government agency may be able to provide you with an interest free, deferred loan to catch up your payments.

Requirements: Meet hardship requirements, demonstrate ability to resume mortgage payment after assistance ends, and agree to on-going credit counseling.

Partial Claim:

You may be able to obtain a loan from HUD (FHA loans only) to bring your loan current. You must be a minimum of 4 months behind.

Requirements: Must have an FHA Loan, Must have FHA mortgage insurance, must be able to afford current mortgage + FHA loan terms, must have a positive budget.

Repayment Plan:

Spreading the defaulted payments out over a series of months, usually not more than six (6).

Requirements: Must have at least one payment, must have proof of income, must have a positive budget, must have the ability to pay current mortgage payment plus a portion of defaulted payment.


Reduce or suspend monthly payments for a period then resume regular payments plus the of deferred amount on a schedule.

Requirements: Must be able to prove hardship circumstances, have a reasonable positive budget.

Mortgage Programs

Relinquish Ownership Options

Sale/Lease Back:

Allows homeowner to remain in their home, gives homeowner up to 2 years to improve their nancial situation, retain majority of their equity.

Requirements: Must have at least $20,000 in equity, property must be in good condition, must have a credit score of 500 or better, must have proof of steady income, must be willing to attend credit counseling and work closely with a credit counselor during the rental period to improve your credit payment performance.

Pre-Foreclosure Sale:

Sell your property at a price equal to or above the amount owed and retain any resulting equity in your home prior to foreclosure.

Requirements: Must be in the early stages of foreclosure.

Short Sale:

A Short Sale is the sale of the property for less than (or short) the amount necessary to pay off the loan in full.

Requirements: Must be able to document reason for short sale, declining property values in the neighborhood, cannot aford property, need to relocate and must sell the home, must be able to vacate home immediately upon sale or prior to closing, understand that the lender may seek a deciency judgement.


Voluntarily “Give Back” your home to the lender. This will not save your home but it will allow you to obtain another home in the future.

Requirements: Must be willing to move quickly & to forfeit any equity.

Cash for Keys:

Sometimes in cases of extreme hardship Lenders are willing to provide a small amount of cash in exchange for possession.


Legal proceeding by Lender to obtain title and possession of real property, typically as a last resort because it is very costly for the Lender.

Requirements: Do nothing, but you will suffer the long term effects on your credit file and the resulting higher cost of credit in the future.