Joy Elliott is a licensed realtor in the San Francisco Bay Area, specializing in various local neighborhoods and experienced in short sales and foreclosures since 1990. The document outlines the Making Home Affordable (MHA) programs, including HAMP, HARP, 2MP, and HAF, designed to assist homeowners in modifying their loans or preventing foreclosure through various options. Homeowners seeking to benefit from these programs should contact their mortgage servicer to explore eligibility and assistance available.

1. Making Home Affordable Programs Joy Elliott, Realtor Your “Joy” in Real Estate People’s Choice Brokers joy@joyelliott.com www.joyelliott.com 510-326-2716

2. 1. Joy Elliott is a San Francisco Bay Area native and has extensive knowledge of all the particular neighborhoods in San Leandro, Castro Valley, Hayward and Hayward Hills, Pleasanton, Dublin, San Ramon and Danville/Alamo area Joy also practices in some areas of Oakland. 2. Joy Elliott has been licensed to sell real estate since 1990 and has experienced both good and bad markets and is very familiar with the short sale and foreclosure process and the ever-changing legislation regarding this process Find an experienced Short Sale Realtor® who aligns themselves to the Realtor® Code of Ethics , as does Joy Elliott and who belongs to your area Multiple Listing Service and is a member of the National Association of Realtors® and the California Association of Realtors® 3. As a Realtor with People’s Choice Brokers I sell residential and residential income property and financing or re-financing saving you money by discounting loan closing costs.

3. It is important to remember that the Home Affordable Modification Program (H.A.M.P.) Homes Affordable Foreclosure Alternatives Program (H.A.F.A) 2 nd Loan Lien Modifications Program(2MP) ARE GUIDELINES AND NOT LAW…LENDERS MAKE THE FINAL DESCISION TO PARTICIPATE MORTGAGE FORGIVENESS DEBT RELIEF ACT IS ONLY APPLIED TO PURCHASE MONEY LOANS, NOT LINES OF CREDIT and used by the IRS to offset the debt as taxable income

4. The Making Home Affordable Program is part of the Obama Administration's broad, comprehensive strategy to get the economy and the housing market back on track . The Making Home Affordable Program offers strong options for homeowners: (1) refinancing mortgage loans through the Home Affordable Refinance Program (HARP) (2) modifying first and second mortgage loans through the Home Affordable Modification Program (HAMP) (3( Second Lien Modification Program (2MP) (4) Alternatives to foreclosure through the Home Affordable Foreclosure Alternatives Program (HAFA).

5. Home Affordable Modifications (HAMP) If you can no longer afford to make your monthly loan payments, you may qualify for a loan modification to make your monthly mortgage payment more affordable. Millions of borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible. Home Affordable Modifications

6. 1. Is your home your primary residence? 2. Is the amount you owe on your first mortgage equal to or less than $729,750? 3. 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)? 4. Did you get your current mortgage before January 1, 2009? 5. 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, click here to determine

7. Modification Evaluator Use this tool to determine if you may be eligible for the Home Affordable Modification. Simply enter your current monthly gross income. The tool will calculate a mortgage payment guideline amount. If your current mortgage payment is above this amount and you meet the other Home Affordable Modification guidelines , then you may be eligible. Please be sure to read the notes below for further information. Click Here for Modification Evaluator

8. 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.

9. Am I eligible for a Home Affordable Refinance? Answer these questions: 1. Are you the owner of a one- to four-unit home? 2. Do you have a loan owned or guaranteed by Fannie Mae or Freddie Mac? 3. Are you current on your mortgage payments? “Current” means that you haven’t been more than 30-days late on your mortgage payment in the last 12 months.

10. Payment Reduction Estimator for Home Affordable Mortgage Modification Total Monthly Payment on Your First (or "primary") Mortgage Be sure to INCLUDE principal, interest, taxes, insurance and homeowners association dues if applicable. Enter Your Gross Monthly Income This is the income of all borrowers who signed your mortgage BEFORE taxes and any adjustments. . Use the link on the next slide to Calculate

11. Payment Reduction Estimator Under the Home Affordable Modification program, the target maximum amount for your mortgage payment (or mortgage debt-to-income) should be 31% of your gross (pre-tax) monthly income. This Payment Reduction Estimator will determine what your current mortgage debt-to-income is and how much your monthly payment may be reduced if you qualify for a modification. Do not include any payments on your second mortgage. You may have taxes and interest in escrow added to your monthly payment already, so be careful to count taxes and escrow only once. Click Here for Estimator Tool

12. In 2009, the Treasury Department introduced the HAFA program to provide a viable option for homeowners who are unable to keep their homes through the existing Home Affordable Modification Program (HAMP). The HAFA program takes effect on April 5, 2010—although some servicers may implement it sooner, if they meet certain requirement--and sunsets on December 31, 2012 Home Affordable Foreclosures Alternatives Program: Guidelines and Forms HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. Servicers participating in HAMP are also required to comply with HAFA. A list of servicers participating in HAMP (including HAFA) is available at: www.makinghomeaffordable.com/contact_servicer.html .

13. Under 2MP, with their investor’s guidance, a mortgage servicer may: Reduce the interest rate to 1% for second liens that pay both principal and interest (amortizing) Reduce the interest rate to 1% amortizing or 2% interest-only for interest-only second liens Extend the term of the second lien to 40 years If the principal was deferred (through forbearance) or forgiven on the first lien, a servicer must forbear the same proportion on the second lien; although a servicer may, in its discretion, forgive any portion or all of the second lien and receive incentives for doing so

14. Many homeowners may be struggling to make their monthly mortgage payments because they have a second lien. The 2nd Lien Modification Program (2MP) offers homeowners a way to lower payments on their second mortgage when their first mortgage is modified under the Home Affordable Modification Program

15. A second lien is eligible for 2MP if: the corresponding first lien has been modified under the Obama Administration’s Home Affordable Modification Program and the second lien servicer is participating it was originated on or before January 1, 2009 it does not have an unpaid principal balance (at consideration for the modification) of less than $5,000 or a pre-modification scheduled monthly payment of less than $100 it has not yet been modified under 2MP it is not subordinate to a second lien or is not a home equity loan in first lien position; it is not a second lien on which no interest is charged and no payments are due until the first lien is paid in full the second lien servicer is in possession of a fully executed 2MP modification agreement or trial period plan by December 31, 2012; or the second lien is not insured, guaranteed, or held by a Federal government agency (e.g. FHA, HUD, VA, and Rural Development)

16. Home Affordable Foreclosure Alternatives (HAFA) Program Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure. With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe

17. These options are available for homeowners who: 1. Do not qualify for a trial mortgage modification under the Making Home Affordable Program; 2. Do not successfully complete the trial period for their modification; 3. Miss at least two consecutive payments during their modification period; or 4. Request a short sale or deed-in-lieu of foreclosure.

18. Once you have determined if you are eligible for a Home Affordable Refinance or Modification, the next step is to contact your mortgage servicer to discuss your situation. A wide array of servicers have agreed to participate in the Home Affordable Modification program and have already engaged borrowers and expanded capacity to begin the modification process for eligible homeowners. In addition, all servicers for loans owned by Fannie Mae and Freddie Mac are required to participate. Look Up Servicers Participating in HAFA Look up to see if your loan is guaranteed by Fannie Mae or Freddie Mac

19. The HAFA Program streamlines both of these options to make them easier for a homeowner to work with their servicer. Under the program, a homeowner can receive $3,000 to help with relocation costs. Mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program. For more information about your options, you should contact your mortgage servicer . If you have questions about the program, or want guidance about how these options may impact your personal situation, you may wish to speak to a HUD-approved housing counselor for free.

20. Short Sale In a short sale, the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. Deed-in-Lieu of Foreclosure Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a deed-in-lieu of foreclosure. With a deed-in-lieu, the borrower voluntarily transfers ownership of the property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances.

21. Joy Elliott is a Realtor, not a tax accountant or a lawyer. You should discuss any particulars with a consultant of your choice Bankruptcy is the ultimate protection from collections. It should always be handled with the aid of an attorney.