In February 2009, the Obama Administration introduced a comprehensive Financial Stability Plan to address some of the key problems of the housing crisis to get our economy back on track. One critical element of that effort is the Making Home Affordable Program, a plan to stabilize the housing market and help struggling homeowners get relief and avoid foreclosure. The Making Home Affordable Fact Sheet can answer many of your questions.

Home Affordable Modification Program ~ One of the programs through Making Home Affordable is HAMP.  HAMP is designed to help make your monthly mortgage payment more affordable.  There are qualifying criteria, so take the time to read more through these Frequently Asked Questions.

Home Affordable Foreclosure Alternative Program ~ Another program through Making Home Affordable is HAFA. Daphne Nelson has become a Certified HAFA Specialist and can help answer any of your questions relating this program that was implemented on August 5, 2010 and will run through December 31, 2012.

Here are some brief highlites of the HAFA progam:

  • HAFA is a part of HAMP. Borrowers who meet HAMP eligibility can say "no" to the loan modification and go straight to HAFA, if eligible. But loan servicers MUST consider borrowers for HAMP and offer HAMP - Home Retention is the 1st priority!
  • The main alternatives under HAFA are a Short Sale and a Deed-in-Lieu
  • HAFA sets standards for the process, timelines & documents required for a Short Sale (no more 4-6 month waiting for lenders to respond!)
  • HAFA allows borrowers to receive a "pre-approved" short sale
  • The borrower will be fully released from any future liability for the debt
  • HAFA provides financial incentives to borrowers, servicers and investors
  • Servicers MUST consider HAFA before sending a loan to foreclosure
  • Borrowers must provide clear & marketable title, maintain the property and cooperate with Listing Agent to market the home

ELIGIBILITY REQUIREMENTS (the program is designed to help homeowners, not investors):

1) The home is your primary residence

2) Your mortgage is a 1st loan originating prior to January 2009

3) Your mortgage is delinquent or delinquency is "reasonably forseeable"

4) Your unpaid balance is equal to or less than $729,750 (your balance as at today, NOT your original loan amount)

5) Your total monthly mortgage payment is currently greater than 31% of your gross income (loans exceeding 31% are viewed as being "unaffordable")

6) You have a financial hardship

 

**Changes and updates to the program are ongoing, so please visit Making Home Affordable often and we will make sure to update this page as often as possible!