The document outlines the Home Affordable Modification Program (HAMP) and Home Affordable Foreclosure Alternatives (HAFA) aimed at assisting homeowners facing financial difficulties. It details eligibility criteria and procedures for short sales, including lender responsibilities and borrower benefits, such as debt forgiveness and relocation assistance. Additionally, it explains the incentives for lenders and real estate agents involved in the process, promoting quicker resolutions to avoid foreclosure.

1. HAMP & HAFA

2. HAMP & HAFA THE NEW MODIFICATION AND SHORT SALE PROGRAMS

4. HAMP – Home Affordable Modification Program ( Modification) HAFA - Home Affordable Foreclosure Alternative (Short Sale )

5. GSE – Government-sponsored enterprise NON – GSE not owned or guaranteed by Fannie or Freddie SPA – Servicer Participation Agreement

6. SSA - Short Sales Agreement RASS – Alternative Request for Approval of Short Sale DIL – Deed – in - Lieu

7. Where to Start: Check your list: http://makinghomeaffordable.gov/contact_servicer.html Is the lender participating in the program? Fannie Mae: 1-800-7FANNIE Freddie Mac: 1-800-FREDDIE Hope Hotline: 1-888-995-HOPE

8. Introducing the Home Affordable Foreclosure Alternatives (HAFA): Streamlined short sale rules Intended to speed up the short sale process Incentivizes borrowers and lenders to work together to avoid foreclosure In effect April 5, 2010 - Dec. 31, 2012 Borrowers receive preapproved short sale terms from the lender PRIOR to putting the home on the market.

9. HAFA SNAPSHOT Lenders must fully release borrowers Less negotiation demands $6,000.00 is maximum for 2 nd lien holders Borrowers walk away with $3,000.00 Quick response from lender Full commission paid to Realtor

10. HAMP – Home Affordable Modification Program ( Modification) Homeowners must first apply for a loan modification through the Home Affordable Modification Program, or HAMP to be eligible for HAFA. Loan Modification options. Trial Period Complete Trial Period Plan Defaults on Modification (2 payments) Request SSA or DIL

11. Criteria to Qualify: 1. Is it a principal residence? 2. Balance owed on the 1st mortgage is equal to or less than $729,750? 3. Are you having ongoing financial trouble? 4. Did you close before January 1, 2009? 5. Is your 1 st mortgage payment (including principal, interest, taxes, insurance and homeowner's association dues, etc) more than 31% of your current gross income?

12. HAMP Default Options for HAFA Participants: Do not qualify for a trial mortgage modification under the Making Home Affordable Program Do not successfully complete the trial period for their modification Miss at least two consecutive payments during their modification period Request a short sale or deed-in-lieu of foreclosure.

13. Buyers of HAFA Contract must be Executed with all the appropriate addenda. Buyer’s must have pre-approval or commitment letter on letterhead from a lender. The sale must represent an “Arm’s Length” transaction. Purchaser may not sell property within 90 calendar days of closing.

14. Who is Participating? Allstate Mortgage Loans and Investments American Home Mortgage AMS Aurora loans Bank of America Chase Citizens Countrywide EMC Fidelity HomEq GMAC Homestar Navy Federal Ocwen

15. www.makinghomeaffordable.com/contact_servicer.html RG Mortgage Roebling Bank Service One Saxon Shore Bank Specialized Loan Servicing Sterling Savings Bank United Bank US Bank United Bank Wachovia Wells Fargo Westcom Wilshire And Many More

16. HAFA TIME: Lenders now must offer a short sale in writing to the borrower within 30 days if the borrower does not qualify for, or complete a loan modification. Borrowers then must respond within 14 days to the lender's short sale agreement. Borrowers must submit the sales contract to the lender within 3 days , along with the buyers' mortgage preapproval and the status of negotiations with other lien holders on the seller's property. Lenders must approve or deny the contract within 10 days.

17. HAFA, What’s in it for the Seller? HAFA rules also state that lenders must release borrowers from the obligation to repay the difference between the sales price and the loan amount No deficiency judgments are allowed for a first or second loan Up to $3,000.00 to the sellers for relocation.

18. HAFA: What’s in it for the Lender? $1,500.00 to loan servicers to cover administrative fees The second mortgage lender was to receive $3,000.00. There is now $6,000.00 for 2nd lien holder incentives (6% Cap per lien) There is an investor incentive of a federal match of up to $2,000.00 who agree to share short sale proceeds with second lien holders

19. HAFA, What’s in it for You? Short Sale Agreement gives the listing real estate agent the right to an undiscounted 6% commission at closing!!

20. Why HAFA Short Sales may close in a fraction of the time: Prelisted price the bank will take will be marketed Contract will be looked at by the bank within 10 days Less negotiation will take place since the guidelines spell out specific numbers. HAMP will have received the hardship documents and ordered a property evaluation Homeowners must meet the minimum eligibility for HAMP modification before HAFA. 90% of all lenders are participating in this program according to National Association of Realtors (NAR) Bank might take a Deed in Lieu if property does not sell.

21. For the Over-Achievers: HAMP Modification dated March 2010: http://makinghomeaffordable.gov/docs/HAMP%20Improvements_Fact_%20Sheet_032510%20FINAL2.pdf Making Home Affordable Plan: http://www.makinghomeaffordable.gov/index.html The Mortgage Forgiveness Debt Relief Act and Debt Cancellation: http://www.irs.gov/individuals/article/0,,id=179414,00.html

22. Options for Those Who Do Not Qualify Forbearance: The “forbearance” agreement means that you pay only a portion of your regular payment or no payment at all for a specific period of time based on your current financial status. At the end of the forbearance period, you will begin making regular payments as well as an additional amount to pay off the past-due amount. Repayment Plan: If you have missed some of your monthly payments, your mortgage servicer may be able to help you catch up by creating a schedule for repaying the past-due amounts. Special mortgage relief assistance for active duty military service members . Pre-foreclosure Sale: If you cannot sell your home for an amount that will pay off the mortgage loan, talk to your mortgage servicer about a pre-foreclosure or “short” sale. The mortgage servicer may be willing to accept a payoff amount less than what you owe on the mortgage balance in certain situations. Deed-in-lieu of foreclosure: If you cannot sell your home in a reasonable amount of time, your mortgage servicer may agree to have you voluntarily transfer the deed to the property to them to help avoid the impact of a foreclosure on your credit rating.

23. MLS Realtor remarks: Short Sale Commission HAFA - Home Affordable Foreclosure Alternative Watson Title Services Lender hereby agrees to extinguish all debt and liability to the note.

24. IT’S ABOUT YOUR TIME AND MONEY Take the stress off your seller Free up your time to do what you do best – sell property Get the seller out from under a hardship and the buyer into a new home Deliver a full commission check to you at closing

25. Q & A