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Understand the Making Home Affordable Program as an alternative to home foreclosure

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Stop foreclosure

  1. 1. Stop Foreclosure
  2. 2. There Are Options To Foreclosure <ul><li>Making Home Affordable Program </li></ul><ul><ul><li>Key Elements </li></ul></ul><ul><ul><ul><li>The Home Affordable Refinance Program </li></ul></ul></ul><ul><ul><ul><li>The Home Affordable Modification Program </li></ul></ul></ul><ul><li>Finally Home </li></ul><ul><ul><li>An Illinois state program established in 2002 to help Illinois residents buy a home or to keep their existing homes from going into foreclosure </li></ul></ul>
  3. 3. Making Home Affordable Program <ul><li>The Home Affordable Refinance Program </li></ul><ul><ul><li>Key Elements </li></ul></ul><ul><ul><ul><li>Applies to eligible borrowers of Fannie Mae and Freddie Mac owned or guaranteed loans </li></ul></ul></ul><ul><ul><ul><li>Loan-to-value: 80%<LTV<125% </li></ul></ul></ul><ul><ul><ul><li>Current program ends Dec. 31, 2012 </li></ul></ul></ul>
  4. 4. Making Home Affordable Program <ul><li>The Home Affordable Modification Program </li></ul><ul><ul><li>Key Elements </li></ul></ul><ul><ul><ul><li>Limited to homeowners who are at risk of default or already in default on loans below $417,000 </li></ul></ul></ul><ul><ul><ul><li>Provides incentives to lenders/servicers to share the cost of reducing mortgage payments from 38% of gross income to 31% </li></ul></ul></ul><ul><ul><ul><li>Current program runs until December 2012 </li></ul></ul></ul>
  5. 5. Making Home Affordable Program <ul><li>The Home Affordable Refinance Program </li></ul><ul><ul><ul><li>Visit </li></ul></ul></ul><ul><ul><ul><li>888-995-HOPE (4673) </li></ul></ul></ul><ul><ul><ul><li>Fill out evaluation questionnaire to see if eligible: </li></ul></ul></ul><ul><ul><ul><ul><li>Owner-occupied principal residence; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Mortgage balance less than $729,750; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Monthly payments on their first mortgage that are greater than 31 percent of their income; </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Demonstrate a financial hardship </li></ul></ul></ul></ul><ul><ul><ul><li>If eligibility looks promising – Request a Modification </li></ul></ul></ul><ul><ul><ul><ul><li>Fill out Request For Modification and Affidavit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Complete Tax Authorization (Form 4056 T - EZ) – allows mortgage servicer to obtain copies of last two years tax returns </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Gather Proof of Income </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Send documents to Mortgage Servicer </li></ul></ul></ul></ul>
  6. 6. Making Home Affordable Program <ul><li>Request a Trial Modification Period </li></ul><ul><ul><li>The Home Affordable Modification Program requires borrowers to enter into a Trial Period Plan before receiving a permanent Home Affordable Modification. During this period, borrowers must submit trial payments and all required forms and documents </li></ul></ul><ul><ul><li>You must make sure that your mortgage servicer receives all of the forms and documents they need to verify your eligibility and offer you a permanent Making Home Affordable Modification before your Trial Period Plan expires. Your trial period plan notice will indicate your document due date . </li></ul></ul><ul><ul><li>Watch video “To Do” List for permanent modification </li></ul></ul>
  7. 7. Home Affordable Modification Program Process Flow – Trial Period Visit website & complete questionnaire Complete Request & Send to Servicer Eligible? No Yes Consider Short Sale <ul><li>Request for Modification </li></ul><ul><li>& Affidavit </li></ul><ul><li>IRS Form 4056T-EZ </li></ul><ul><li>Proof of Income </li></ul>Receive Temporary Loan Modification Trial Period (3 months) Apply for Permanent Modification
  8. 8. Home Affordable Modification Program Process Flow – Permanent Modification Provide necessary documentation to Mortgage Servicer to document and apply for a permanent modification No Yes Consider Short Sale Receive Permanent Loan Modification Permanent Modification?
  9. 9. Making Home Affordable Program <ul><li>Key Statistics* </li></ul><ul><li>More than four million homeowners have refinanced their mortgages to helping to save more than $7 billion in the past year** </li></ul><ul><li>More than one million are saving an average of around $500 per month </li></ul>* Source: Testimony of Phyllis Caldwell Chief Homeownership Preservation Officer U.S. Department of the Treasury Before the House Financial Services Subcommittee on Housing and Community Opportunity “The Recently Announced Revisions to the Home Affordable Modification Program (HAMP)” Press Release; April 14, 2010 **: More than 1.2 million homeowners have started trial modifications and almost 1.5 million offers for trial modifications have been extended to borrowers.
  10. 10. Making Home Affordable Program <ul><li>For More Information About How to Avoid Foreclosure contact: </li></ul>Steve Wagner – MBC, CIPS, Realtor© REMAX Action 630-433-6646 (cell) 630-980-2600 (office) [email_address] Each office is independently owned and operated