New Guidance for Financially Distressed Homeowners

New guidelines to help financially stressed homeowners lower their monthly payments have been released.

It’s part of the Home Affordable Modification Program or HAMP put together by the Treasury Department and the Department of Housing and Urban Development.

The program’s Principal Reduction Alternative, HAMP-PRA, allows qualified homeowners to reduce the principal of their home mortgage over three years.

The new guidance offers updated information to distressed borrowers, mortgage loan holders and loan servicers as the program hopes to help homeowners avoid foreclosure.

Find out more by checking out the recent news release from the IRS.