Homeowner Affordability and Stability Plan - Closed Status and Alternatives.
NOTE: The Homeowner Affordability and Stability Plan (HASP) is now obsolete and permanently closed. This broad federal initiative, which originally launched in 2009 to stabilize the U.S. housing market, has been replaced by more modern, permanent mortgage relief standards. While the specific HASP components like HAMP and HARP are no longer active, the federal government has successor programs through HUD and the FHFA to assist homeowners with loan modifications and foreclosure prevention.
Regulations That Protect You: If your mortgage is not government-backed (FHA, VA, USDA, Fannie Mae, or Freddie Mac) as listed below, you may still be eligible for "In-House" modifications. Every major bank is now required by the Consumer Financial Protection Bureau (CFPB) to provide a clear path for hardship assistance. Submit a Complaint or Check Bank Rules at https://www.consumerfinance.gov/,
Why HASP Ended
The Homeowner Affordability and Stability Plan ended because its temporary, crisis-era programs were designed for a specific set of economic conditions that no longer exist. The federal government has shifted from these temporary "emergency" plans to a Permanent Loss Mitigation Framework. This ensures that every homeowner with a government-backed mortgage has a legal right to a loan modification review, regardless of whether a national housing crisis is occurring.
- The current landscape focuses on sustainability and "Net Tangible Benefits." Instead of the old HASP model of principal write-downs, the government now uses tools like the FHA Payment Supplement and the Flex Modification to lower monthly payments by extending loan terms and lowering interest rates to current market levels. For homeowners searching for the original HASP, the active resources below represent the currently available federal and state pathways to avoid foreclosure and lower your housing costs.
What replaced the Homeowner Affordability and Stability Plan?
FHA Payment Supplement
This is the primary replacement for FHA-insured homeowners who cannot afford their current mortgage but want to keep their existing low interest rate. The program allows the FHA to use a "Partial Claim" to pay a portion of your monthly mortgage for a set period, effectively lowering your out-of-pocket cost without requiring a full loan refinance. To be eligible, you must occupy the property as your primary residence and demonstrate a financial hardship. Official FHA Loss Mitigation Details: https://www.hud.gov/helping-americans/fha-loss-mitigation.
Fannie Mae & Freddie Mac Flex Modification
The Flex Modification is the standard for conventional mortgages and has completely replaced the old HAMP and HASP modification. It provides an average monthly payment reduction of 20% by extending the mortgage term to 40 years and, in some cases, deferring a portion of the principal balance to the end of the loan. Eligibility requires that the homeowner is at least 60 days delinquent or facing "imminent default."
State Housing Trust Funds (Post-HAF Relief)
Since the Homeowner Assistance Fund (HAF) has exhausted its budget in most states as of early 2026, many local governments have pivoted to permanent Housing Trust Funds. These state-run programs offer emergency mortgage assistance or grants for critical home repairs for low-income seniors and families. Eligibility is usually capped at 80% of the Area Median Income (AMI). Find Your State Housing Finance Agency: https://www.ncsha.org/housing-help/.
HUD-Approved Foreclosure Prevention Counseling
No matter the year or borrower, the most effective way to navigate the closure of programs like HASP is through a HUD-certified housing counselor. These non-profit agencies provide free legal advocacy to help you apply for modifications and can often stop a foreclosure sale by mediating directly with your bank. Find a HUD Counselor Near You: https://www.consumerfinance.gov/find-a-housing-counselor/.
How to Apply for Mortgage Relief Post HASP
The application process begins by contacting your Mortgage Servicer’s Loss Mitigation Department. You can usually start this process online through your bank’s website by searching for "Mortgage Assistance" or "Hardship Options." You will be required to submit a standard application package including your two most recent pay stubs, 60 days of bank statements, and your most recent federal tax return.
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