AZ Housing Dept. taking applications for Principal reduction foreclosure aidArizona homeowners 60 days behind on their mortgages can see if they qualify for a loan modification under a plan funded by the federal "Help for the Hardest Hit Housing Markets" program.
1. Homeowners need to go to azhousing.gov and answer 13 questions. Anyone without Internet access can call 877-448-1211 to work with a housing counselor. Borrowers need all documentation, including mortgage bills, tax returns and W-2 income statements.
2. The Housing Department will examine applications and mortgage information to see if homeowners are eligible.
3. If it appears a homeowner is eligible, the department will hand the application over to a housing counselor who will check the documentation and work with the homeowner.
4. If a homeowner's loan, income and debt documentation meet the program's guidelines, the department will begin working on a plan to back a loan modification based on the current value of the home and what the borrower owes. The agency will determine how much principal needs to be paid off on the loan to make the payment affordable and send it to the lender.
5. The lender must decide whether to match the amount of principal the Housing Department is willing to pay off and then sign off on the loan modification. The borrower doesn't qualify for the modification until the lender agrees to the terms.
If you have any questions or need additional information, please feel free to contact me. Being a licensed Realtor, specializing in Short Sales, Distressed Properties and Loan Modifications, I may be able to assist you. Feel free to also call me regarding the no cost Short Sale program with $3,000 moving assistance to the seller.
Sources: US Dept. of Treasury and MakingHomeAffordable.gov, Farhad is a Licensed Realtor  specializing in Short Sales and Pre-Foreclosures, Bank owned homes and Income properties. Farhad is also a licensed mortgage professional with Mortgagepro USA (Lic. # LO-09114855). Please email your questions to [email protected] or contact Farhad Patny at 623 297 4448.