HAFA: Home Affordable Foreclosure Alternative. Outline of Short sale program with specific do's, don’ts & time lines. Borrower can receive 3K in moving expenses.
Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.
Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).
Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).
Uses standard processes, documents, and timeframes/deadlines.
Provides the following financial incentives:
$3,000 for borrower relocation assistance;
$1,500 for servicers to cover administrative and processing costs;
Up to $2,000 for investors who allow a total of up to $6,000 in short sale proceeds to be distributed to subordinate lien holders, on a one-for-three matching basis.
You may be eligible for HAFA if you meet all of the following criteria:
You live in the home or have lived there within the last 12 months.
You have a documented financial hardship.
You have not purchased a new house within the last 12 months.
Your first mortgage is less than $729,750.
You obtained your mortgage on or before January 1, 2009.
You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.
HARP: Home Affordable Refinance Program. For home owners who are current on their payments.
You may be eligible for HARP if you meet all of the following criteria:
The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.
The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009.
The current loan-to-value (LTV) ratio must be greater than 80%.
The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.
HAMP: Home Affordable Modification Program. For home owners that can not meet conditions of their loan. Can reduce principle and interest.
You may be eligible for HAMP if you meet all of the following criteria:
• You occupy the house as your primary residence. ?• You obtained your mortgage on or before January 1, 2009. ?• You have a mortgage payment that is more than 31 percent of your monthly gross (pre-tax) income. ?• You owe up to $729,750 on your home.?• You have a financial hardship and are either delinquent or in danger of falling behind. ?• You have sufficient, documented income to support the modified payment. ?• You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.
For these 2 programs your mortgage must be owned by Fannie Mae or Freddie Mac use these website to check: