HAFA in a nutshell

Home Affordable Foreclosure Alternatives a quick overview…

 

There are many details and each person’s circumstance are different, to be certain you qualify please contact me.

 

Under the Making Home Affordable initiative there are several different government programs.  HAMP is the loan modification program.  This program allows loans owned or back by Fannie Mae and Freddie Mac to be modified.  HAFA is the short sale program; it was created for the people who were not eligible for HAMP or who were not able to make it through the trial loan modification stage.  HAFA does not allow for loans owned or backed by Fannie Mae and Freddie Mac to go through the program.  That is what is currently in place, but major changes are happening as of August 1.  For information on HAFA and the other programs under the Making Homes Affordable plan, please visit: www.makinghomesaffordable.gov.

 

 Please note that as of August 1, 2010 Fannie Mae and Freddie Mac will be releasing their own HAFA programs which will then make the Fannie or Freddie loans eligible for this program.  They do, of course, have their own specific stipulations, but will use the same documents as the current HAFA program.

 

Below are the criteria that the 1^st mortgage must meet in order to be considered for HAFA:

For a loan to qualify, it must meet the following criteria:

·         The property is the borrower's principal residence

·         The mortgage loan is a first lien mortgage originated on or before January 1, 2009

·         The mortgage is delinquent or default is reasonably foreseeable

·         The current unpaid principal balance is equal to or less than $729,750

·         The borrower's total monthly mortgage payment exceeds 31 percent of the borrower's gross income (as defined in HAMP Supplemental Directive 09-013)

·         The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac4

 

In order to find out if the property is owned or backed by Fannie Mae or Freddie Mac:

 

Fannie Mae:

http://www.fanniemae.com/loanlookup/

1-800-7FANNIE (8am to 8pm EST)

 

Freddie Mac:

https://ww3.freddiemac.com/corporate/

1-800-FREDDIE (8am to 8pm EST)

 

To find out which loan servicers/banks are participating in HAFA, go to: http://www.makinghomeaffordable.gov/contact_servicer.html and click on “Show All Servicers.”  This is a live link that is updated regularly.  This site also includes the contact information for each servicer’s department that is handling HAFA/HAMP requests.

 

There are 2 ways to apply for a HAFA short sale.  The first is if the seller/borrower has already applied for a HAMP loan modification and has been denied the loan mod, either during the trial period or before it started.  Please use the attached RASS form to apply for a HAFA short sale if the seller meets the first mentioned criteria.  The second way is by attempting a short sale without having applied for a HAMP loan modification.  Please use the attached ARASS form to apply for a HAFA short sale if the seller meets the second mentioned criteria.

 

Each loan servicer/bank participating in HAFA/HAMP is required to follow of all the program’s guidelines, unfortunately many of these servicers do not know about this policy nor do they know what guidelines are.  If the bank/loan servicer is not being responsive despite its obligations to the program, the short sale seller may contact Hope Now at www.HomeNow.com which is managed through HUD.  HUD has a lot of weight with the lenders/loan servicers.  The seller will be assigned to a local credit counselor who will help address the situation. The seller may also contact the National Association of Consumer Advocates at www.naca.net.  This organization offers pro-bono attorney services.

 

Please let me know if you have any questions of there is anything at all we can do for you.

 

 

Elaine Beery

RE/MAX Achievers

480-570-1912 Direct

800-525-9471 Tolll Free

480-248-2826   Fax

 

Elaine@BeeryRealty.com

www.BeeryRealty.com

www.BeeryRealty.com/bolgspot

 

 

 

 

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