I am Certified Home Retention Consultant and have been working in Loss Mitigation for over 7 years. This is always a difficult an emotional issue and I would like the opportunity to share with you the ways we can work with your lender to save your home from Foreclosure.
Have the Right Information to Make the Right Decision for you. First of all, knowing that you are having some sort of financial trouble is an emotionally charged event. Most owners have intense feelings of doubt, fear and anxiety. Questions arise, such as: "My credit is bad…. can I refinance?" "My bank has already started the Foreclosure. Is it too late?" "I can't afford the payment I have now. Is there any way to refinance and lower my payment?" "Are we doing the right thing?" "Is bankruptcy an option?" "Are we sure about this?" We understand that potentially losing your home is an emotionally charged event and we will treat you with respect, fairness and honesty so you can take control of your situation. We do not promise a one size-fits-all solution, but rather a confidential conversation about your particular situation.
This section will cover straightforward issues and concerns regarding one of your biggest financial challenges...saving your home and your credit!
Anyone can fall behind on their mortgage payment and face foreclosure. It is often the result of unplanned, even uncontrollable circumstances in a person’s life such as unemployment, the death or illness of a loved one, natural disaster, divorce or other unexpected changes in a family’s financial situation. After payments are missed, the mortgage servicer can initiate the legal process of foreclosure.
- I will help you understand your alternatives to foreclosure.
- I will help you connect with the right people at your mortgage servicer – those with the authority to work out alternatives.
- If you don’t have the ability to stay in your home, I may be able to help you to relocate.
THE HAFA PROGRAM (Effective April 5, 2010)
Remember I am condensing here and pointing out what might be important to you the homeowner. I Hope this helps you understand more about the new HAFA Program, I know that it is confusing, I try my best to make it easier. If you dont need any help, but you know somebody in your family , friend, co worker that is facing foreclosure please dont let them loose their house in foreclosure, there is help available but dont wait until it is to late. And the best news is that there is no cost.
WHAT IS HAFA ?
The Home Affordable Foreclosure Alternatives (HAFA) Program is a government-sponsored initiative overseen by the US Treasury Department. HAFA provides two alternatives that will allow you to avoid foreclosure:
(HAFA ) Short Sale (SSA )– Deed-In-Lieu . The other one ( RASS ) Short sales ( HAFA Alternative )
To be eligible for HAFA (SSA) homeowners must first apply for a loan modification through HAMP.
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 under HAMP.
Allows borrowers to receive pre-approved short sales ( if you are using the standard HAFA program )within 10 business days (including the minimum acceptable net proceeds).
Who is Eligible for HAFA ?
* Loan is first mortgage
* Property must be borrowers primary residence
* Loan originated before January 1, 2009
* Borrower is in default or has legitimate cause to be in default in the foreseeable future
* Unpaid balance is less than or equal to $729,750
* Total mortgage payment (per month) is more than 31% of borrower’s gross income (as defined in HAMP Supplemental Directive 09-013)
The mortgage is not owned or guaranteed by Fannie Mae or Freddie Mae.
Servicers are required to consider any HAMP eligible borrower for the HAFA program within 30 days from the date the borrower:
* Is not able to qualify for trial period plan
* Is not successful in completing the trial period plan
* Is in default on HAMP modification because of missing two or more consecutive payments
* Attempts a short sale or deed-in-lieu
* Servicer must diligently attempt to inform the borrower, in writing, of the availability line of a deed-in-lieu and short sale
* The servicer gives the borrower 14 days on to contact them and state their interest in these potential solutions.
* After 14 days, the servicer has no obligation to extend the HAFA offer.
Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed). *Junior lien holders accepting a HAFA incentive must also release borrowers from future liability.
They may not require contributions from either the real estate agent or borrower/seller as a condition for releasing its lien and releasing the borrower from personal liability.
Provides financial incentives: $3,000 for borrower relocation assistance $1,500 for servicers to cover administrative and processing costs, and up to $2,000 match for investors for allowing 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; up to 6% of the unpaid principal balance of each subordinate loan).
All servicers participating in HAMP must also implement HAFA in accordance with their “ Own written policy, consistent with investor guidelines “The policy may include such factors as the severity of the loss involved, local market conditions, the timing of pending foreclosure actions, and borrower motivation and cooperation.
If the borrower does not wish to be considered for a modification, the servicer may consider the Alternative RASS in accordance with this Supplemental Directive without first having to enter into an SSA with the borrower.
The borrower or listing broker must send a completed RASS to the servicer within three days following the receipt of an executed offer to purchase. Servicers then have 10 days to accept or deny a short sale request (RASS)
The servicer may require the closing to take place within a reasonable period after it approves the RASS, but not sooner than 45 days.