HAFA

HAMP eligibility criteria:

Principal residence, First lien mortgage, Serious delinquency, Unpaid balance under $729,750, AND Mortgage payment in excess of 31% of monthly gross income

Home Affordable Foreclosure Alternatives (HAFA)

Participants of HAFA cannot save the homeowner from losing their property, can eliminate foreclosure including provisions and incentives for servicers to allow short sales and Deed in Lieu of Foreclosure.

• HAFA is designed for homeowners who have applied to HAMP but have had no success with their loan modification program, participants must still meet HAMP guidelines.

• Homeowner must be considered for HAFA within 30 days if they cannot meet HAMP requirements or if they specifically request HAFA

• Homeowner has only 14 days to respond to a written notice that HAFA may be available to them giving the lender the time to meet the 30 day deadline

• Homeowner must occupy property

FHA Refinance Option for Underwater Homeowners – Encouraging Responsible Refinancing

A voluntary option for lenders and borrowers (probably roll out in Fall of 2010), Which encourages lenders and borrowers to work together, when appropriate, to restructure debts

• Qualifying first lien mortgage loans must have a minimum write-down of at least 10 percent and total mortgage loan to value on the home can be no greater than 115 percent after the refinancing

• Several other qualifications and limitations regarding the borrower’s ability to repay the mortgage