Government Foreclosure Programs to Help Homeowners
Options to avoid Foreclosure. Options to avoid Short Selling.
HAFA, HAMP, HARP, oh my! You might think they are all the same thing, but they are unique programs that can an alternative to short selling or foreclosure.
Home Affordable Foreclosure Alternatives (HAFA) Program
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 SM. 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 SM is available for mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac or serviced by over 100 HAMP SM participating servicers.
For More Information
If you have additional questions about getting mortgage help, contact one of our housing 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. Help is available in more than 160 languages.
Home Affordable Modification Program (HAMP)
If you are having a tough time making your mortgage payments for reasons not related to unemployment, you may qualify for HAMP. HAMP lowers your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income to make your payments more affordable. The typical HAMP modification results in a 40 percent drop in a monthly mortgage payment. Eighteen percent of HAMP homeowners reduce their payments by $1,000 or more.
Eligibility*
You may be eligible to apply if you meet all of the following:
- You occupy the house as your primary residence.
- You obtained your mortgage on or before January 1, 2009.
- You have a mortgage payment that is more than 31 percent of your monthly gross (pre-tax) income.
- You owe up to $729,750 on your home.
- You have a financial hardship and are either delinquent or in danger of falling behind.
- You have sufficient, documented income to support the modified payment.
- 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 is for guidance only. Contact your mortgage servicer to see if you qualify for HAMP.
Second Lien Modification Program (2MP)
If your first mortgage was permanently modified under HAMP SM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage under 2MP. 2MP is designed to work in tandem with HAMP to provide a comprehensive solution for homeowners with second mortgages to increase long-term affordability and sustainability. If the servicer of your second mortgage is participating, they will automatically evaluate you for a second lien modification.
Eligibility*
You may be eligible to apply if you meet all of the following:
- Your first mortgage was modified under HAMP.
- 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.
- You have not missed three consecutive monthly payments on your HAMP modification.
- You owe more than $5,000 on your second mortgage.
- Your monthly second mortgage payment is more than $100.
*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for 2MP.
Program Availability
Servicers participating in 2MP are:
- Bank of America, NA
- BayviewLoan Servicing, LLC
- CitiMortgage, Inc.
- Community Credit Union of Florida
- GMAC Mortgage, LLC
- Green Tree Servicing LLC
- iServeResidential Lending, LLC
- iServeServicing, Inc.
- J.P.MorganChase Bank, NA
- NationstarMortgage LLC
- OneWestBank
- PennyMacLoan Services, LLC
- PNC Bank, National Association
- PNC Mortgage
- Residential Credit Solutions
- ServisOne Inc., dbaBSI Financial Services, Inc.
- Wells Fargo Bank, NA
For More Information
If you have additional questions about getting mortgage help, contact one of our housing 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. Help is available in more than 160 languages.
Program Dates
Effective Aug. 13, 2009 – Dec. 31, 2012.
Home Affordable Refinance Program (HARP)
If you are current on your mortgage and have been unable to obtain a traditional refinance because the value of your home has declined, you may be eligible to refinance through HARP. HARP is designed to help you refinance into a new affordable, more stable mortgage. The HARP loan is a new loan and will require a loan application and underwriting process. Loan refinance fees will apply.
Eligibility*
You may be eligible to apply if you meet all of the following:
- Your mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae.
- The mortgage must have been sold to Freddie Mac or Fannie Mae on or before May 31, 2009.
- The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May 2009.
- You must be current on your mortgage at the time of the refinance with a good payment history over the last twelve months.
- The current loan-to-value (LTV) ratio must be greater than 80%.
*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you qualify for HARP.
Program Availability
The HARP program is offered by many servicers. Homeowners should check with their mortgage servicer (the company to which homeowners make their mortgage payments) to determine if they are participating in HARP. If their mortgage servicer is not participating, the homeowner may contact other lenders that participate in HARP to determine if they are eligible for a refinance.
Steps to HARP Refinance Determine whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac by visiting their respective Loan Lookup tools.
- Contact your current mortgage servicer or another that is approved by Fannie Mae or Freddie Mac to inquire about HARP.
- Compare rates and costs with additional mortgage companies to ensure best refinance terms.
For More Information
- Visit FannieMae.com or call (800)7Fannie.
- Visit FreddieMac.com, call (800)Freddie, Option 2
- If you have additional questions about getting mortgage help, contact one of our housing 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. Help is available in more than 160 languages.
The data from the above government programs were copied direct from the websites, please visit the government websites for updated details.
