Behindo n Payments?

Un d e r s t a n d i n gH A F A

NewA lternativesa reA vailable.

The government'sH omeA ffordableF oreclosureA lternativesP rogrami s here ... and you need an advocate.

You may haveh eardi t before,b ut now it'st akinge ffect:o ur federalg overnmenits activelyt ryingt o combatt he millionso f

foreclosuresh appeninga crosst he countryT. o addresst his need for new options,a n initiativeis in effectc alledt he Home

AffordableF oreclosureA lternativesP rogram,o r HAFA.W hile the detailso f what this meanst o the governmentl,e nders,

servicersa nd agentsa re complicatedy,o u-the homeowner-needt o cleadyu nderstandth e new solutionsa vailableto you.

Thisr eportp rovidesa straightforwaredx planationo f HAFAa nd,m orei mportantlyw, hati t meanst o you.

First: What is HAMP?

The HomeA ffordableM odi ficationP rogram( HAMP ) was

introducedin Marcho f 2009t o assisth omeownerws hose

mortgagep aymentsw ere too high for theiri ncomel evels

(mores pecificallyth, osee xceeding3 1 percento f income).

For homeownersw hosem ortgagep aymentsa re only

slightly out of reach, HAMP can lower the payments,

allowingt hem to stay in theirh omes.U nfortunatelfyo r

mosth omeownerfsa cingf inanciahl ardshipH, AMPc an't

offera largee noughm ortgager eductions, o mostw ho

entert he programd on'tq ualifyo r end up defaultingo n

the modifiedm ortgages.

HAFA,o r HomeA ffordableF oreclosureA lternativesi,s

the government'sn ewestp rogramp ut in placet o benefit

homeowners who do not qualify for HAMP assistance.

Releaseidn Apri2l 010,t hisp rogramis d esignedto e xpedite

foreclosurea voidanceo ptionsf or homeownersin need.

By promotingth e swifte xecutiono f a shorts ale or deedin-

lieu,H AFAc an potentiallsya vem illionso f homeowners

fromt he financiallyd evastatinge vento f foreclosure.

In a short sale, the property is sold for less than the

mortgagea mounti no rdert o avoidt hef oreclosurep rocess.

ln a deed-in-lieuo f foreclosuret,h e propertyi s given

fullyt o the lenderb ecauseth e homeownecr an no longer

makep aymentsa, ndt he propertyis thens oldt o retrieve

parto f the loanb alanceo wed.

- .-

I = I 02010 Distressedp roperty Instrtute, LLcA tt RightsR eserved,

l-f The above.brokeragea ssumesn o responsibilityn or guaran_teethse accuracyo f thjs information and js not engagedi n the practice of taw nor givest egata dvice

ffi lt is stronglyr ecommendedth at you seeka ppropriatep rofessionact ounselr egardingy our rights as a homeovj-ner

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HAFA can potentiallys ave you a lot of grief and

heartache by creating standardized processes and

settingl imitso n howl onga lenderc anw aitt o respondto

shorts aler equestsC. urrentlys,h orts alesc anb e lengthy

transactionsm, akingi t difficultf or potentialb uyerso f

yourh omet o remaini n the process.

The program requires participating lenders to

determinew hatt heya re willingt o acceptb efored ealing

with a shorts ale request-similart o otherp re-approval

processesT. his is so the lenderc an't abruptlyc hange

howm uchm oneyi t wantst o receivef romt he shorts ale.

The fewerc urveballsa lenderc ant hrow,t he better.

HAFAa lsob enefitsh omeownerbsy stoppinga lender's

abilityt o pursuea deficiencjyu dgmenta ftera shorts ale

or deed-in-liehua s beenc ompleted.

Prohibitioonf a deficiencjyu dgmentm eansy ourl ender

can'tc ome knockingo n yourd oort o collectt he portion

of the mortgagen ot coveredb y the transactionS. uch

protectiona llowsy ou to more quicklyr egainf inancial

stabilitya nd moveo n withy ourl ife.

Homeowners may also receive a $3,000 incentive

upon completion of a short sale.

Why Are Lenders Participating?

HAFA offers lenders an incentive of up to $6,000 for

a successfully processed short sale or deed-in-lieu.

The lenders are not permitted to charge you-the

homeowner-any processing fees or out-of-pocket

expensesa, ndt hisi ncentiveis givent o themi n exchange

for that limitation.

Thet ruthi s, a selectf ew lendersa nd mortgages ervicers

may not participatein the HAFA program.B ut despite

this, a lender almost always loses more money in a

foreclosurteh ani n a shorts aleo r deed-in-lieulf. a lender

is convincedth ata homeownehr as no way of payingt he

currentm ortgaget,h eyw illb e concernedw iths alvaginga s

mucho f theiri nvestmenats possibles, o shorts alesa re

generallyth e besto ptionf or thema s well.

lf you attempt a short sale under HAFA and a transaction

does not closeb y the programd eadlinet,h e lenderw ill

receivey our deed-in-lieuo f foreclosureT. his will provide

effectivelyth e same resultf or you, since eitherw ay you

will have a more positives olutiont o foreclosurey, our

mortgage debt will be forgiven, your credit score will be

salvageda,n dy ouw illr eceiveth e$ 3,000in centivteo help

with moving costs.

WhichL endersA re CurrentlyP articipating?

Generallys peaking,le ndersw ho participatein HAFA

are alsop articipatinign HAMPA. s a CDPE,I can always

providet he most up-to-dateli st of lendersp articipating

in HAFA.F ollowingis the U.S. TreasuryD epartment's

reoorto f HAMPi nvolvemenats of Januarv2 010.

"These (HAFA) options eliminate the need for potentially

lengthy and expensive foreclosure proceedings, preserve

the physical condition and value of the property by reducing

the time a propefty is vacant, and allow the homeowners to

transition with dignity to more affordable housing."

David Stevens,

Gommissioneor f the FederaHl ousingA dministration

@2010D istressePdr opertyIn stitute,L LCA tl RrghtsR eseryed.

The above.brokeragea ssJmesn o responsibility-nogr uaranteesth e accuracyo f this informationa nd is not engagedi n the practice of taw nor givesl egata dvice

It ls stronglyr ecommendetdh at yous eeka ppropnatep rofessionacto unserl egardingyo urr ightsa sa homeowner

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MakingH omeA ffordableP rogramS: ervicerP erformancRe eportT hroughJ anuary2 010

AllstateM ortgageL oans& InvestmentsI,n c.

American Eagle Federal Credit Union

AmericanH omeM ortgageS ervicingI,n c

AMS ServicingL, LC

AuroraL oanS ervicesL, LC

Banko f AmericaN, .A.1

Bank United

Bay FederaCl reditU nion

Bay Gulf Credit Union

BayviewLoanS ervicingL, LC

CarringtonM ortgageS ervicesL, LC

CCO Mortgage

CentralF loridaE ducatorsF ederaCl reditU nion

CentraJl erseyF ederaCl reditU nion

ChaseH omeF inanceL, LC

CitiMortgageI,n c.

Citizens1 stN ationaBl ank

CitizensF irstW holesaleM ortgageC ompany

CommunityB ank& TrustC ompany

CUC MortgageC orporation

DigitalF ederaCl reditU nion

DuPageCredUitn ion

EatonN ationaBl ank& TrustC o

Farmers State Bank

FidelityH omesteadS avingsB ank

First Bank

First Federal Savings and Loan

FirstF ederaSl avingsa ndL oanAssno. fLakewood

FirstK eystoneB ank

FirstN ationaBl anko f GrantP ark

FranklinC reditM anagemenCt orporation

Fresno County Federal Credit Union

GlassC ity FederaCl reditU nion

GlenviewS tateB ank

GMACM ortgageI,n c.

GoldenP lainsC reditU nion

GraftonS uburbanC reditU nion

Great Lakes Credit Union

GreaterN evadaM ortgageS ervices

GreenT reeS ervicingL LC

HarleysvillNe ationaBl ank& TrustC ompany

HartfordS avingsB ank

HillsdaleC ountyN ationaBl ank

HomeF inancingC enter,I nc

HomEqServicing

HomeStarBan&k FinanciaSl ervices

Horicon Bank

Horizon Bank. NA

lberiabank

IBM Southeast Employees' Federal Credit

Union

lC FederaCl reditU nion

ldahoH ousinga nd FinanceA ssociation

iServeResidentiLael ndingL LC

J.P.MorganChasBea nk,N A,

Lake City Bank

LakeN ationaBl ank

Litton Loan Servicing

LosA lamosN ationaBl ank

MarixServicingL,L C

MembersM ortgageC ompanyI,n c

MetropolitaNn ationaBl ank

MissionF ederaCl reditU nion

MorEquityl,n c

MortgageC enter,L LC

MortgageC learingC orporation

NationaCl ity Bank

NationstarMortgagLeL C

OaklandM unicipaCl reditU nion

OcwenFinanciaClo rporationI,n c.

OnewestBank

ORNLF ederaCl reditU nion

ParkV iewF ederaSl avingsB ank

PennyMacloanS ervicesL, LC

PNC Bank,N ationaAl ssociation

PurdueE mployeesF ederaCl reditU nion

Qlending,I nc.

QuantumS ervicingC orporation

ResidentiaCl reditS olutions

RG Mortgage Corporation

RoeblingB ank

RoundPointMortgagSee rvicingC orporation

SaxonM ortgageS ervicesI,n c.

SchoolsF inanciaCl reditU nion

SEFCU

Select Portfolio Servicing

ServisOneIn c.,d baBSlF inanciaSl ervicesl,n c.

ShoreBank

Silver State Schools Credit Union

SoundC ommunityB ank

SpecializedL oanS ervicingL, LC

Spirit of Alaska Federal Credit Union

StanfordF ederaCl reditU nion

SterlingS avingsB ank

TechnologCy reditU nion

Tempe Schools Credit Union

The Bryn MawrTrust Co.

The Golden 1 Credit Union

U S. BankN ationaAl ssociation

United Bank of Georgia

United Bank Mortgage Corporation

VantiumCapitaIln, c.

Verity Credit Union

WachoviaM ortgageF, SB3

Wells Fargo Bank, NA

WescomcentraCl reditU nion

Yadkin Valley Bank

'Bank ofAmerica, NA includes Bank ofAmerica, NA, BAc Home Loans Servicing LP Home Loan Seryices and Witshire credit corporation

?J P [4organ Chase Bank, NA includes EMC Mortgage Corporatton

lwachovia Mortgage FSB includes Wachovia Bank NA

Currentl isto f participatinlge ndersa t: http://www.makinghomeaffordable.gov/contact_servicer.html

Therei s a lot to understanda boutt his programa nd manya spectso f it are likelyt o change.A s a CDPE,I keep

closea ttentionto the changesa s they happen,s o that you can get the mostr elevantc, urrenti nformationa,n d the

bestp ossibles ervice.lf youw ouldl iket o findo ut morea boutt he HAMPo r HAFAp rogramso, r if someoney ou Know

needsa ssistancein avoidingfo reclosurep,l eased on'th esitateto contactm e.

I'm here to help.

O2010D islressePdr opertyIn sritureL, LCA tt RjshtsR eserved.

Ilh( .l:s1 sbt_ro9n:"g_hl 9yrl e-"c1o1mg:m_te:tnlTce-etoh: a1t0 y roeuss peoenk:ia bpitpitrfnooprr rgautaperr aonfe-tsesetisho en aalc curacyo f this informationa nd is not engagedi n the practjce of law nor givest egala dvice counserl egardingyo urr iqhtsa sa homeow-ner

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