HAFA is a government sponsored short sale and deed-in-liue program. It is an extension of the HAMP loan modification program. This slide show takes you through the HAFA process.

1. HAFA: Sounds Simple But the Devil is in the Details

2. HAFA Highlights

6. HAFA Definitions

15. General Terms and Conditions

16. General Terms and Conditions Cannot Complete Foreclosure

17. General Terms and Conditions Can Require Payments

18. General Terms and Conditions Must Waive Deficiency Rights

19. General Terms and Conditions Servicer, Investor, Lien Holders & Borrowers

20. General Terms and Conditions Prior to Sale Servicer Must Determine Acceptable Minimum Net Proceeds

21. General Terms and Conditions Exception for Non-Profits that Intend to Rent or Re-sell to Borrower HAFA now allows servicer to enter into a borrower deed for lease or borrower repurchase agreement

22. Servicers must post their eligibility matrix on their website by October 15, 2011 Qualifying for HAFA

29. THE HAFA SHORT SALE AGREEMENT PROCESS

30. THE HAFA SHORT SALE AGREEMENT PROCESS

31. THE HAFA SHORT SALE AGREEMENT PROCESS

32. Even if borrower fails to respond servicer can still consider them for HAFA No longer need to show monthly mortgage payment exceeds 31% of monthly gross income THE HAFA SHORT SALE AGREEMENT PROCESS

33. THE HAFA SHORT SALE AGREEMENT PROCESS

34. THE HAFA SHORT SALE AGREEMENT PROCESS

35. THE HAFA SHORT SALE AGREEMENT PROCESS

36. THE HAFA SHORT SALE AGREEMENT PROCESS

37. THE HAFA SHORT SALE AGREEMENT PROCESS

38. THE HAFA SHORT SALE AGREEMENT (SSA)

39. THE HAFA SHORT SALE AGREEMENT (SSA) General Terms

40. Borrower must authorize servicer to share personal financial info necessary to complete the short sale (including to US Treasury Department)

41. Buyer cannot sell within 90 days of closing Notice that sale must be arm’s length transaction

42. Monthly payment, if any – can’t exceed 31% of gross monthly income

43. Lender agrees to not complete foreclosure while there is a valid SSA

44. Borrower agrees to provide info and sign documents to verify program eligibility

45. Maintain interior/exterior for marketability

46. Work to clear any title issues

47. Cancelation or contingency clauses for PA

48. THE HAFA SHORT SALE AGREEMENT (SSA) Key Marketing Terms

49. Must be listed with licensed real estate agent Commission cannot exceed 6%

50. Borrower must cooperate with listing broker and respond to servicer inquiries

51. Either list price approved by servicer or expressed as net price On or before 10-15-11 each servicer must have plan to periodically re-evaluate property value

52. THE HAFA SHORT SALE AGREEMENT (SSA) Closing and Other Expenses

53. Reasonable and customary for community where property is located Servicer must describe the costs that can be deducted

54. Real estate commission to be paid, not to exceed 6%

55. Notice if servicer hires contractor to assist broker

56. THE HAFA SHORT SALE AGREEMENT (SSA) Duration of SSA

57. A fixed term not less than 120 calendar days from effective date

58. Up to 12 months

59. Set out terms under which SSA can be terminated

60. THE HAFA SHORT SALE AGREEMENT (SSA) Borrower Financial Liabilities/Incentives

62. Servicer will allow a portion of proceeds to subsequent lien holders in exchange for full satisfaction of the debt

63. $3,000 relocation incentive to borrower

64. THE HAFA SHORT SALE AGREEMENT (SSA) Notice

65. Notice that short sale may have income tax consequencies

66. Notice that short sale may have a negative impact on credit score

68. THE HAFA SHORT SALE AGREEMENT (SSA) Early Termination

71. Borrower qualifies for modification Borrower bring account current Borrowers financial situation improves significantly

76. Post SSA Purchase Agreement

77. Post SSA Purchase Agreement

78. 3 days Post SSA Purchase Agreement

79. 3 days 10 days Post SSA Purchase Agreement

80. Pre-SSA Purchase Agreement

81. Pre-SSA Purchase Agreement

82. 3 days Pre-SSA Purchase Agreement

83. 3 days 45 days Pre-SSA Purchase Agreement

84. Every 15 days 45 days 3 days Pre-SSA Purchase Agreement

85. Every 15 days 30 days 3 days Was 45 days Pre-SSA Purchase Agreement

86. Every 15 days 30 days 3 days Pre-SSA Purchase Agreement

87. Pre-SSA Purchase Agreement

88. 3 days 30 days Every 15 days Pre-SSA Purchase Agreement

89. 3 days 30 days Every 15 days Can be given while considering borrower for HAFA Pre-SSA Purchase Agreement

90. First Lien Holder Requirements

95. Subsequent Lien Holder Requirements

100. Incentive Payments

105. The Hype: Fast, Certain & Simple The Reality: Slow, Uncertain & Complex HAFA Short Sale Approval! HAFA Request

106. HAFA Problems

113. HAFA Track Record

114. U.S. HAFA Short Sales and DIL’s April 2010 to June 2011 Source: Making Homes Affordable June Report U.S. April 2010 to May 2011 Completed Total HAFA Short Sales & DIL’s 21,412 10,754 BofA 2,824 1,873 JP Morgan Chase 7,722 3,596 Litton Loan Servicing 1,119 483 Select Portfolio 1,223 591 Wells Fargo 6,229 3,123 All Other Servicers 2,295 1,088 HAFA Track Record

115. U.S. HAFA Short Sales and DIL’s April 2010 to June 2011 Source: Making Homes Affordable June Report 316 are completed DIL’s U.S. April 2010 to May 2011 Completed Total HAFA Short Sales & DIL’s 21,412 10,754 BofA 2,824 1,873 JP Morgan Chase 7,722 3,596 Litton Loan Servicing 1,119 483 Select Portfolio 1,223 591 Wells Fargo 6,229 3,123 All Other Servicers 2,295 1,088 HAFA Track Record

116. U.S. HAFA Short Sales and DIL’s April 2010 to June 2011 Source: Making Homes Affordable June Report 316 are completed DIL’s 8,724 active files U.S. April 2010 to May 2011 Completed Total HAFA Short Sales & DIL’s 21,412 10,754 BofA 2,824 1,873 JP Morgan Chase 7,722 3,596 Litton Loan Servicing 1,119 483 Select Portfolio 1,223 591 Wells Fargo 6,229 3,123 All Other Servicers 2,295 1,088 HAFA Track Record

117. U.S. HAFA Short Sales and DIL’s April 2010 to June 2011 Source: Making Homes Affordable June Report 316 are completed DIL’s 8,724 active files Compared to approximately 210,000 to 260,000 overall short sales U.S. April 2010 to May 2011 Completed Total HAFA Short Sales & DIL’s 21,412 10,754 BofA 2,824 1,873 JP Morgan Chase 7,722 3,596 Litton Loan Servicing 1,119 483 Select Portfolio 1,223 591 Wells Fargo 6,229 3,123 All Other Servicers 2,295 1,088 HAFA Track Record