Ryan and Linda felt discouraged. They were $65,000 under water on their balloon mortgage. They didn't know where to turn for help in keeping their Phoenix-area home. Then a friend suggested contacting Jerry, a housing counselor with Chicanos Por La Causa.
Based on their situation and available program options, Jerry gave Ryan and Linda solutions that met their goals. He also gave them hope as they worked through the process together.
- To bring their heads above water, they tapped the state's Hardest Hit Fund. This federal government program disburses funding to housing finance agencies in states hit hardest by the economic crisis so that they can offer innovative measures to help homeowners.
- Next, Ryan and Linda refinanced through the Home Affordable Refinance Program® (HARP) into a 4.5% fixed-rate mortgage on the remaining balance. Monthly savings: $330.
"Through HARP and the counseling agency, we were able to pay toward the principal loan amount as well as refinance to a fixed-rate mortgage – bringing our family peace of mind," Linda said.
Freddie Mac works with not-for-profit housing organizations like Chicanos Por La Causa nationwide to help distressed homeowners and promote neighborhood stability. Find out who to contact for help in your area.
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