• Free Case Evaluation

    Name :

    Phone :

    Email :

    Your Message :


    Government Programs

    Home Affordable Foreclosure Alternative (HAFA)

    HAFA is a program that helps transition homeowners out of their troubled mortgages by helping to facilitate a short sale or a Deed-in-Lieu (DIL) of foreclosure. HAFA is the Home Affordable Foreclosures Alternative Program that is government sponsored. Fannie and Freddie Mac backed loans qualify for HAFA as well as 100 other participating servicers. Your bank may or may not participate.

    • Requires borrowers to be fully released from future liability. (No cash contribution, promissory note, or deficiency judgment is allowed).
    • You may get $3,000 for borrower relocation assistance.

    The first mortgage may contribute to pay off a settlement to your second mortgage of $2,200 or 3% up to $8,500.

    1. You have not purchased a home in the last twelve months. Sometimes, the servicer will look past this if you relocated for employment.
    2. Principal balance CANNOT be over $729,750.
    3. Homeowner must either be delinquent or very close to delinquency on their mortgage or suffer from a significant financial hardship.
    4. Your loan must have originated before January 2009.


    Home Affordable Modification Program (HAMP)

    The goal of the program is to modify the loans of millions of homeowners in an effort to make homeowner`s mortgages more affordable and keep homeowners in their homes.

    Homeowners must meet the following criteria in order to qualify for HAMP:

    1. Homeowner must either be delinquent or very close to delinquency on their mortgage or suffer from a significant financial hardship. If it is a rental property, you would have to be delinquent.
    2. The home can be a rental home or the homeowner`s primary residence.
    3. Mortgage was originated prior to January 1, 2009.
    4. Principal balance CANNOT be over $729,750 if it is a single unit property, $934,200 on a 2 unit property, $1,129,250 on a 3 unit property, or $1,403,400 on a 4 unit property.
    5. You have to show that you can afford to make the modified payments.

    If the homeowner qualifies for HAMP, the Lienholder attempts to structure the homeowner`s mortgage to be 31% of the homeowner`s gross monthly income.

    There are three steps Lenders typically take to achieve the 31% threshold.

    1. First, the Lender attempts to reduce the interest rate on the mortgage down to as low as 2%.
    2. If that does not get the homeowner`s mortgage payment below 31% of the homeowner`s gross monthly income, the Lender extends the loan up to 40 years.
    3. Lastly, and only if necessary, the Lender may defer a portion of the balance and then request that portion of the principal as a lump sum payment at the end of the loan.


    • $1,000 incentive for homeowner who successfully completes the trial period.
    • Up to an additional $1,000 of annual incentive for each year the homeowner stays in the program.
    • Homeowners may be able to receive annual principal reduction LINK TO PRINCIPAL REDUCTION for up to five years.
    • Late fees may be waived, if the homeowner completes the trial program.