hafa for homeowners hollywoodhillsavoidforeclosure
DESCRIPTION
HAFA for Home Owners. Options to avoid foreclosure. Includes highlights of Fannie and Freddie programs.TRANSCRIPT
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An overview of An overview of HAMP, HARP and HAFAHAMP, HARP and HAFA
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HAMP – Home Affordable Modification Program
HARP – Home Affordable Refinance Program
HAFA – Home Affordable Foreclosure Alternative
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Many homeowners are struggling to make their monthly mortgage payments perhaps because their interest rate has increased or they have less income. A Home Affordable Modification will provide them with mortgage payments they can afford.
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Is your home your primary residence? Is the amount you owe on your first mortgage
equal to or less than $729,750? Yes NoAre you having trouble paying your
mortgage?For example, have you had a significant increase in your mortgage payment OR reduction in your income since you got your current loan OR have you suffered a hardship that has increased your expenses (like medical bills)?
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Did you get your current mortgage before January 1, 2009? Yes No
Is your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner's association dues, if applicable) more than 31% of your current gross income? Note: if you are uncertain, determine eligibility at makinghomeaffordable.gov
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Many homeowners pay their mortgages on time but are not able to refinance to take advantage of today’s lower mortgage rates perhaps due to a decrease in the value of their home. A Home Affordable Refinance will help borrowers whose loans are held by Fannie Mae or Freddie Mac refinance into a more affordable mortgage.
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According to the resources released by the government, following are a list of qualifications:
You are the owner occupant of a one- to four-unit home
You are no more than 30 days late on your mortgage
The loan on your property is owned or securitized by Fannie Mae or Freddie Mac (see Useful Links)
http://makinghomeaffordable.gov/refinance_eligibility.html
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Fannie Mae1-800-7FANNIE (8am to 8pm EST)www.fanniemae.com/loanlookup
Freddie Mac1-800-FREDDIE (8am to 8pm EST)www.freddiemac.com/mymortgage
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At the time you apply, you are current on your mortgage payments (you haven’t been more than 30 days late on your mortgage payment in the last 12 months, or if you have had the loan for less than 12 months, you have never missed a payment)
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You believe that the amount you owe on your first mortgage is about the same or slightly less than the current value of your house
You have income sufficient to support the new mortgage payments, and the refinance improves the long-term affordability or stability of your loan
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Took effect April 5, 2010Aids eligible homeowners by pre-approving
short sales before listing and releasing them from future liability of mortgage debt
1st Lien Mortgages Apply (no FHA or VA)Used as a follow up if HAMP modifications are
not possible or if the home owner requests short sale
Not every home owner will qualify or be eligible for HAMP, HARP or HAFAHome owner may request HAFA short sale
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Loan is eligible if all the following conditions are met:• Property is borrower’s principal residence• Exception: 90 day rule
• Loan is a 1st lien mortgage• Originated before Jan 1, 2009• Mortgage is delinquent or default is reasonably
foreseeable• Current unpaid balance is equal to or less than
$729,750• Borrower’s total monthly mortgage payment
exceeds 31 percent of borrower’s gross income• List with a licensed agent knowledgeable in the local market area, no FSBOs
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$3,000 to Borrowers for Relocation Assistance• Will be deducted from gross sale proceeds at closing• May classify as taxable income
$1,500 to Servicers for administration and processing fees• Servicer may not charge borrower any processing fee
and MUST pay all out-of-pocket expenses$2,000 to Investors for subordinate lien holder
payoff• For every three dollars spent to release liens buyer or
investor is reimbursed one dollar – capped at 6,000
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Lender waives rights to deficiency judgmentServicer must assess the property value and
cannot charge the borrower in advance• May be added to outstanding debt if transaction is
not completedServicer must review title and cannot
charge the borrower in advance• May be added to outstanding debt if transaction is
not completed
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Don’t abandon the propertyMaintain the property in ‘sellable’ conditionClear and marketable title (HOA, taxes, liens)Cooperate with agent to sell by providing
accessRespond to agent and servicer in a timely
mannerProvide current income and asset statements
to your agent to keep file up to dateAct in good faith
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Reinforce borrower responsibilitiesNegotiate with servicerDisseminating info to all partiesProvide relocation assistance to sellerProactively market the property for saleRefer home owner to tax and legal
professionalsFiduciary responsibility to client (home owner)Act in good faith
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Notify borrower of eligibility, etc.Determine property value and bottom lineApprove/disapprove of short saleReport to credit bureausObtain mortgage insurer & investor
approval for HAFA optionsRespond under timelines specifiedAct in good faith
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HAFA consideration = 30 calendar days Borrower solicitation and response = 14 calendar days SSA – short sale agreement = 120-365 days Return SSA and listing agreement = 14 calendar days Purchase offer to servicer = 3 days Approval of offer by servicer = 10 days Closing = 45-60 days
The intention of the program is to get these short sales done quickly. Therefore, all parties must be responsive and comply with timelines for this to
happen.
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Borrowers’ financial situation improves enough to modify, refinance or come current
Borrower or listing broker fails to act in good faith in listing, marketing or closing
Significant change in property condition or valueEvidence of fraud or misrepresentationBorrower files for BK and court declines to
approveLitigation is initiated i.e. divorceBorrower fails to make monthly payments per
SSA
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Foreclosure within 60 days? No short sale or DIL
Employer relocation $5000 or 3x PITI? Want DIL? 120 days Want to stay? D4L Non-HAFA SS ok Ends 12/31/2012
Similar to Fannie… Borrower must be
60 days delinquent DIL only after SS
90d $5000 or 3x PITI? Must pay 31% … Non-HAFA SS ok Ends 12/31/2012
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Lenders and loan servicers participating in HAFA must sign a servicer participation agreement with Fannie Mae to participate in HAMP by October 3, 2010• For a full list of servicers participating in HAMP, visit
Making Home Affordable's Participating Servicers List. • http://makinghomeaffordable.gov/contact_servicer.html• Over 100 servicers have signed agreements to
participate
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For a copy of this presentation, specific links or any question, For a copy of this presentation, specific links or any question, please email your request to:please email your request to:
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