Information about Foreclosure Alternatives

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HOME AFFORDABLE FORECLOSURE ALTERNATIVES

The Home Affordable Foreclosure Alternatives
("HAFA") program provides homeowners with an alternative to resolve
their mortgage debt and avoid foreclosure. If you are unable to qualify
for a loan workout, you will have the ability to sell your home through a
short sale if the amount you owe on your mortgage is more than the
value of your home. Through the short sale you will be able to resolve
your debt. Please see below for eligibility requirements.

You may be eligible to apply if you meet all of the following:

  • You have not purchased a new house within the last 12 months.
  • You have a documented financial hardship.
  • Your first mortgage amount is less than $729,750.00.
  • 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, forgery, money laundering, or tax evasion
    in connection with a mortgage or real estate transaction.

*These eligibility criteria are for guidance only. Please call us at 888-395-3997 to determine if you qualify for HAFA.
To apply for a preapproved Short Sale Agreement ("SSA"), please provide the following documents:

  • Hardship affidavit/request for modification and affidavit ("RMA")
  • Evidence of residency
  • Subordinate lien documentation
  • Form of full financial disclosure documentation required

To submit and existing offer using an Alternative Request for
Approval of Short Sale ("Alternative RASS") please provide the following
documents:

  • Hardship affidavit/request for modification and affidavit ("RMA")
  • Evidence of residency
  • Subordinate lien documentation
  • Form of full financial disclosure documentation required
  • Property listing agreement
  • Purchase and sale contract
  • Copy of earnest money check
  • Preapproval letter from buyer
  • HUD-1

To establish property value, a valuation of your home will be
obtained to determine the current market value with one of the following
services:

  • Broker price opinion
  • Full appraisal
  • Automated valuation model

Deed in Lieu – The HAFA program offers you the option to transfer
the title or ownership of the property to the investor in order to
satisfy your mortgage and avoid foreclosure. This process is referred to
as a deed-in-lieu of foreclosure. You can explore this option if you
are deemed not eligible for the HAFA Short Sale Program.

What can you expect with the HAFA program?

  • Step 1 – call us toll free at 888-395-3997 to request
    assistance and explore your options under the HAFA program. We can
    provide you with a Loss Mitigation Financial Package via mail, e-mail or
    fax.
  • Step 2 – if you do not wish to purse or are deemed ineligible for a modification and want to sell your home you have that option.
  • Step 3 – usually a period of 120 calendar days is allowed to market and sell your home.
  • Step 4 – once a qualified offer is obtained, we will
    allow up to five business days to submit for approval. We encourage you
    to submit the offer immediately upon receipt to expedite the review
    process.
  • Step 5 – if you are approved for the HAFA short sale or
    deed-in-lieu, a qualified loan specialist will contact you to discuss
    the terms of your eligibility.


LOSS MITIGATION AND EXPLORING ALTERNATIVES TO FORECLOSURE

During the course of home ownership, increased expenses or changes
in your family income may make it difficult to pay your bills including
your monthly mortgage payments. You should always keep your mortgage
payments current if possible. But if you cannot continue to make your
monthly mortgage payments for reasons beyond your control, please
contact us to discuss various alternatives to foreclosure depending on
your specific circumstances.

If your payment difficulties are temporary, you may qualify for one of the following options:

  • Reinstatement – this is the payment of the total amount due in a lump sum by a specific date.
  • Forbearance plan – this allows you to reduce or suspend
    payments for a short time and then bring your loan current. A
    forbearance plan may be combined with a reinstatement when you know that
    you will have enough funds to bring your loan current at a later date,
    such as a tax refund insurance settlement, or investment reaching
    maturity.
  • Repayment plan – this is an agreement to resume making
    your regular monthly payments plus a portion of the past due amount each
    month until you bring your loan current.

If your payment problem is long-term or it is not likely that you
will be able to bring your loan current at any time, other options may
be appropriate including the following:

  • Modification – if you are able to make some monthly
    payment but are unable to bring your loan current, a modification
    changes the terms of your loan permanently to make the monthly payments
    more affordable. These changes may include one of more of the following:
    adding the missed payments to the loan balance, reducing the interest
    rate or extending the term of your loan.
  • Sale of property – the property is put on the market and
    the mortgage loan is paid off from the proceeds at closing. In a
    "short-sale" situation, the lender accepts less than the total amount
    due and still considers the loan paid-in-full.
  • Deed-in-lieu of foreclosure – foreclosure is a legal
    process by which a lender takes ownership of your home if you do not
    make the mortgage payments. With a "deed-in-lieu" the lender accepts a
    transfer of the title to your home instead of foreclosure.
  • Partial claim – you may be able to receive a one-time
    interest-free loan from the mortgage guarantor to bring your loan
    current. You may be allowed several years before repaying this separate
    loan.

Please call our Loss Mitigation Department toll-free at
888-395-3997. A member of our staff will conduct an interview to
determine your circumstances and explore options that may be available
to you. Please do not delay – the sooner that you call, the more likely
we can find an alternative for you. In order to begin the review
process, please have the following information available and ready when
you call:

  • Your mortgage loan account number
  • A brief explanation of your financial circumstances
  • Your recent income documents including pay stubs and benefit
    statements from Social Security, disability, unemployment, retirement or
    public assistance
  • Your tax returns from the previous two years
  • A detailed listing of your monthly household expenses

The U.S. Department of Housing and Urban Development ("HUD")
sponsors housing counseling agencies throughout the country that provide
advice and guidance regarding mortgage loan defaults, foreclosures,
credit issues and foreclosure alternatives. You can find a HUD counselor
in your area by visiting the HUD Website or by calling HUD toll-free at 800-569-4287.

NOTE: THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION
OBTAINED DURING A CALL WILL BE USED FOR THAT PURPOSE. IF YOU ARE
CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY OR HAVE
BEEN DISCHARGED IN BANKRUPTCY, THIS SUMMARY IS FOR INFORMATION PURPOSES
ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT.

For general information regarding the HAFA program, please call us at 888-395-3997.
Disclaimer: Not all loans will be eligible for program
consideration. Program outline is subject to change. Please continue to
contact us as other options may be available

Need assistance? Call 1-855-899-9885

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