HAFA What is it? Does it help…really? • Home Affordable Foreclosure Alternatives (HAFA) Program (aka Exit Gracefully) • If your mortgage payment is unaffordable and you are interested in transitioning to more affordable housing, you may be eligible for a short sale or deed-in-lieu of foreclosure through HAFA. The benefit of a HAFA short sale is that you are no longer responsible for the difference between what you owe on your mortgage and the amount that your home sells for. You will also receive $3,000 in relocation assistance upon successful closing of your short sale or deed-in-lieu of foreclosure. • Eligibility* • You may be eligible to apply if you meet all of the following: • You live in the home or have lived there in the last 12 months. • You have a documented financial hardship. • You have not purchased a new house within the last 12 months. • Your first mortgage is less than $729,750. • You obtained your mortgage on or before January 1, 2009. • You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction. • *Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HAFA. • Program Availability • HAFA is available for mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac or serviced by over 100 HAMP participating servicers • The Home Affordable Modification Program (HAMP) includes the Unemployment Program, Principal Reduction Alternative and theHome Affordable Foreclosure Alternatives Program • Explore Eligibility • Start here to get help! • Please answer the following questions to determine your next steps so that you can start making the most of Making Home Affordable programs. • Is your home your primary residence? • Yes No Don't Know • Is the amount you owe on your first mortgage equal to or less than $729,750? • Yes No Don't Know • 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)? • Yes No Don't Know • Did you get your current mortgage before January 1, 2009? • Yes No Don't Know • 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? If you are uncertain about your monthly mortgage payment and gross income, click here. • Yes No Don't Know • Are you the owner of a one- to four-unit home? • Yes No Don't Know • Do you have a loan owned or guaranteed by Fannie Mae or Freddie Mac? If you are uncertain who owns or guarantees your loan, click here. • Yes No Don't Know • 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. • Yes No Don't Know • Are you struggling to make your monthly mortgage payments because you have a second lien? • Yes No Don't Know • Do you live in Arizona, California, Florida, Michigan, Nevada, North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Alabama, Georgia, Illinios, Indiana, Kentucky, Mississippi, New Jersey, Tennessee, or Washington, DC? • Yes No Don't Know • Eligibility Next Steps YES, you may be eligible for the following programs: Home Affordable Modification Program - Your answers indicate that you may be eligible for the Home Affordable Modification Program, learn more about the Home Affordable Modification Program. • Second Lien Program - If you carry a second mortgage and your first mortgage is eligible for, or has already received a HAMP modification, learn more about the Second Lien Modification Program. • Hardest Hit Fund -Programs established by the Hardest Hit Fund vary by state, learn more about Hardest Hit Fund programs in your state here. • Home Affordable Foreclosure Alternatives - If you are struggling to make your mortgage payments and looking for a way out, consider Home Affordable Foreclosure Alternatives. If you have additional questions about getting mortgage help, contact one of our expert advisors at (888)995-HOPE(4673). These HUD-approved housing counselors will help you understand your options, design a plan to suit your individual situation, and prepare your application. Research shows that homeowners who work with housing counselors like these are more successful and have better long-term outcomes. There is no cost to you for this valuable, around-the-clock service. And they speak more than 160 languages. • We're sorry, you are not eligible for the programs below, but find out more about the next steps and other options. • Home Affordable Refinancing Program - learn more about the Home Affordable Refinancing Program. • Emergency Homeowners Loan Program (EHLP) - Programs established by the Emergency Homeowners Loan Program will vary by state, visit the HUD Emergency Homeowners' Loan Program page to learn more. • Link of Mortgage Servicers participating in HAFA. • If your mortgage servicer is not on this list your client will not be eligible for HAFA • http://www.makinghomeaffordable.gov/get- assistance/contact-mortgage/Pages/default.aspx • Loan also HAS TO BE A FANNIE MAE OR FREDDIE MAC LOAN. • www.fanniemae.com/loanlookup • 1-800-7FANNIE (8am to 8pm EST) • www.freddiemac.com/mymortgage • 1-800-FREDDIE (8am to 8pm EST) • Find a Counselor • Why work with a counselor? A HUD-approved housing counselor will talk to you about your situation and help you decide what mortgage options are best for you. A counselor will explain what documents you will need to provide to your mortgage company and may be able to contact the mortgage company on your behalf. If you work with a housing counselor, the odds are 1.7 times larger that you will avoid foreclosure. A housing counselor can also help you make a budget so that you can meet your monthly mortgage payment and other expenses. The counselor will have information about local resources that may be helpful to you. There is no charge to work with a HUD-approved counseling agency. Where can I get help? HUD sponsors housing counseling agencies throughout the country that can provide advice on buying a home, renting, defaults, foreclosures, credit issues, and reverse mortgages. Find a HUD-approved housing counselor You can also call 1-888-995-HOPE (4673) to speak to an expert advisor immediately, 24 hours a day, 7 days a week, 365 days a year, in over 170 languages. They answer 98% of their calls within 30 seconds. This valuable, around-the-clock service is available completely free. • Before you call Use the checklist below to make sure that you have all of the information you need to work with a HUD-approved housing counselor. These documents are helpful to make sure that you have all of the information you need to correctly fill out your paperwork and make a budget. Checklist • Information about your first mortgage, such as your monthly mortgage statement. • Information about any second mortgage or home equity line of credit on the house. • Account balances and minimum monthly payments due on all of your credit cards. • Account balances and monthly payments on all your other debts such as student loans and car loans. • Your most recent income tax return. • Information about your savings and other assets • Information about the monthly gross (before tax) income of your household, including recent pay stubs if you receive them or documentation of income you receive from other sources. • It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.) if applicable. • Link for Website: • http://www.makinghomeaffordable.gov/progr ams/exit-gracefully/Pages/hafa.aspx • Beware of Scams • Foreclosure rescue and mortgage modification scams are everywhere. Protect yourself so you don't lose money - or your home. • Tips to Avoid Scams • Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan. • Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams. • Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house. • Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt. • Never make a mortgage payment to anyone other than your mortgage company without their approval. • What to Do if You Have Been the Victim of a Scam • If you believe you have been the victim of a scam, you should file a complaint with the Federal Trade Commission (FTC). Visit the FTC’s online Complaint Assistant or call 1-877-FTC- HELP (1-877-382-4357) for assistance in English or Spanish. More Tips to Avoid Scams • Federal Trade Commission -- Watch the Foreclosure Rescue Scams Video on the FTC ’s YouTube Channel. • Office of the Comptroller of the Currency -- The U.S. Department of the Treasury’s Office of the Comptroller of the Currency provides tips and materials to help homeowners avoid mortgage modification and foreclosure rescue scams. Find them here. • The Loan Modification Scam Prevention Network -- The Loan Modification Scam Prevention Network is a national coalition of governmental and private organizations created by Fannie Mae, Freddie Mac, NeighborWorks America™ and the Lawyers' Committee for Civil Rights Under Law to provide resources to educate homeowners about the dangers of loan modification scams and support federal, state and local efforts to combat these scams. If you believe you have been the victim of a scam, you can report the scam through the campaign’s online complaint form. • The Obama Administration has launched a coordinated effort across Federal and state government and the private sector to target mortgage loan modification fraud and foreclosure rescue scams that threaten to hurt American homeowners and prevent them from getting the help they need during these challenging times. Click here for more information • Financial Fraud Enforcement Task Force -- The Financial Fraud Enforcement Task Force maintains a wide list of resources and information dedicated to helping find and report suspected cases of financial fraud. Visit www.StopFraud.gov.