The document provides an overview of three key programs aimed at assisting homeowners facing mortgage challenges: HAMP (Home Affordable Modification Program), HARP (Home Affordable Refinance Program), and HAFAs (Home Affordable Foreclosure Alternatives). It outlines the eligibility criteria for homeowners struggling with payments, including modifications, refinancing, and short sales, detailing the necessary conditions and timelines to participate in these programs. The document emphasizes the importance of timely responses and cooperation among all parties to facilitate quick resolutions of mortgage hardships.

1. An overview of HAMP, HARP and HAFA

2. HAMP – Home Affordable Modification Program HARP – Home Affordable Refinance Program HAFA – Home Affordable Foreclosure Alternative

5. 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.

6. Is your home your primary residence? Is the amount you owe on your first mortgage equal to or less than $729,750? Yes No Are 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)?

7. 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

9. 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.

10. 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

11. Fannie Mae 1-800-7FANNIE (8am to 8pm EST) www.fanniemae.com/loanlookup Freddie Mac 1-800-FREDDIE (8am to 8pm EST) www.freddiemac.com/mymortgage

12. 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)

13. 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

15. Took effect April 5, 2010 Aids eligible homeowners by pre-approving short sales before listing and releasing them from future liability of mortgage debt 1 st 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 HAFA Home owner may request HAFA short sale

16. Loan is eligible if all the following conditions are met: Property is borrower’s principal residence Exception: 90 day rule Loan is a 1 st 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

17. $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

18. Lender waives rights to deficiency judgment Servicer must assess the property value and cannot charge the borrower in advance May be added to outstanding debt if transaction is not completed Servicer must review title and cannot charge the borrower in advance May be added to outstanding debt if transaction is not completed

19. Don’t abandon the property Maintain the property in ‘sellable’ condition Clear and marketable title (HOA, taxes, liens) Cooperate with agent to sell by providing access Respond to agent and servicer in a timely manner Provide current income and asset statements to your agent to keep file up to date Act in good faith

20. Reinforce borrower responsibilities Negotiate with servicer Disseminating info to all parties Provide relocation assistance to seller Proactively market the property for sale Refer home owner to tax and legal professionals Fiduciary responsibility to client (home owner) Act in good faith

21. Notify borrower of eligibility, etc. Determine property value and bottom line Approve/disapprove of short sale Report to credit bureaus Obtain mortgage insurer & investor approval for HAFA options Respond under timelines specified Act in good faith

22. 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.

23. 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 value Evidence of fraud or misrepresentation Borrower files for BK and court declines to approve Litigation is initiated i.e. divorce Borrower fails to make monthly payments per SSA

24. 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

25. 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

26. For a copy of this presentation, specific links or any question, please email your request to: [email_address] (866) 55 HOMES Check out the resources on my site: HollywoodHillsAvoidForeclosure.com