The following programs have been designed for persons who have had a decrease in income, unexpected medical bills or loss of job. Call your loan provider and ask for Loss Mitigation. They will send you the paperwork to complete this process.
If I can help in any way please give me a call at 770-317-9287. Vicky
Home Affordable Foreclosure Alternatives Program (HAFA)
In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program takes effect on April 5, 2010—although some servicers may implement it sooner, if they meet certain requirement--and sunsets on December 31, 2012.
Home Affordable Foreclosures Alternatives Program: Guidelines and Forms
HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP (including HAFA) is available at: www.makinghomeaffordable.com/contact_servicer.html
HAFA Provisions
· Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.
· 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.
· Requires all servicers participating in HAMP to implement HAFA in accordance with their own written policy, consistent with investor guidelines. The policy may include factors such as the severity of the potential loss, local markets, timing of pending foreclosure actions, and borrower motivation and cooperation. **Copyright Realtor.com
For more details go to: http://makinghomeaffordable.gov/
What are my alternatives if I loss my job, have decreased hours or unexpected expense and can no longer pay my mortgage.
Contact your lender and complete a loss mitigation form. Arrange an appointment with a HUD-approved housing counselor to explore your options at 1-800-569-4287 or TDD 1-800-877-8339. Be aware of Scams.
Special Forbearance: Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.
Mortgage Modification: You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount. Not all investors allow modification.
Partial Claim: Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current. See lender for details.
Pre-foreclosure sale: This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan. **BB&T Loss Mitigation Information
HOME AFFORDABLE MODIFICATION PROGRAM (HAMP)
The following mortgages are eligible for a modification under the Home Affordable Modification program (HAMP):
First-lien mortgages owned, guaranteed, or securitized by Freddie Mac that are single-family 1- to 4- unit primary residences, including condos, cooperatives, Single-Family Seller/Servicer Guide (Guide) – eligible manufactured homes, and our negotiated conforming jumbo mortgages. FHA, VA, and RHS guaranteed mortgages are eligible, subject to the relevant agency guidelines. Mortgages for properties that are abandoned, vacant, or condemned are not eligible. Mortgages may be previously modified, but can only be modified once under HAMP.
Borrowers may be eligible for this program if they meet the following requirements:
Borrowers may be considered for a HAMP Trial Period if they are current or less than 60 days delinquent and determined to be in imminent default, or 60 days or more delinquent. A borrower must have an affirmation of financial hardship. Borrowers who may be in foreclosure, in pending litigation involving the mortgage, or who are in active bankruptcy. Borrowers currently performing under another workout arrangement will be considered for a Home Affordable Modification if they request it. Borrowers must currently have a monthly housing expense-to-income ratio greater than 31 percent of their verified gross monthly income. **FreddieMac.com