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Home Affordable Program, (HAFA) Expires 12/31/2016

Making Home Affordable Programs will expire December 31st 2016.

The federal government’s Home Affordable Modification Program (HAMP) and Home Affordable Refinance Program (HARP) as well as the  Home Affordable Foreclosure Alternative program (HAFA) were originally due to expire on December 31st 2015. The Federal Housing Finance Agency (FHFA) announced that the popular mortgage refinancing, modification, and foreclosure alternative programs will be extended through the end of 2016.

Per the program revisions homeowners now have until December 31st 2016 to take action and apply for any of these government-backed programs.

Since 2009 when the Making Home Affordable Programs (MHA ) were introduced these programs have been extremely popular with homeowners who are trying to reduce their mortgage costs and stay in their home or sell to avoid foreclosure.

The Making Home Affordable Programs will expire on December 31st 2016.

Home Affordable Refinance Program (HARP)

The Home Affordable Refinance Program, or HARP, was introduced in 2009.

Through this program, homeowners who may not otherwise qualify for a refinance due to equity loss can refinance their homes and potentially secure a lower interest rate. Borrowers can also use HARP to refinance from an adjustable-rate mortgage (ARM) loan to a more secure and predictable fixed-rate loan.

There are other refinancing programs available for homeowners in 2015 and 2016. HARP is unique, According to FHFA  HARP is currently the only program that offers refinance loans to homeowners with no equity. Upside down Borrowers are often able to refinance through HARP. Traditional refinancing programs are generally not available to borrowers with no equity.

HARP is limited to borrowers whose existing mortgage was sold to Freddie Mac or Fannie Mae on or before May 31, 2009.

Borrowers looking to apply for a HARP refinance loan need to be current on their mortgage payments. Borrowers must not have any late payments within the last 6 months from the time of the application, and no more than one late payment within the last 12 months.

The HARP program expiration date has been extended several times in the past, HARP was originally scheduled to expire in December 2015, the deadline has been pushed back until December 2016.

The Making Home Affordable Programs will expire on December 31st 2016.

Home Affordable Modification Program (HAMP)

The Home Affordable Modification Program (HAMP), is a key part of the federal government’s “Making Home Affordable” initiative.

HAMP is designed to help homeowners who are at risk of  potentially losing their properties to foreclosure, by giving them a more affordable and sustainable monthly payment on their loan. The program is open to homeowners who have already defaulted on their monthly mortgage payment, and also to those borrowers who are in danger of defaulting in the future.

To be eligible for HAMP in 2015 or 2016, the borrowers existing mortgage loan must have been originated on or before January 1, 2009.

The deadline for HAMP was also extended until December 2016.

The Making Home Affordable Programs will expire on December 31st 2016.

Home Affordable Foreclosure Alternative Program (HAMP)

The Home Affordable Foreclosure Alternative Program, or HAFA, was launched in 2009. It is one of the main programs that make up the Obama Administration’s “Making Home Affordable” program and this program paved the way as well as influenced a lot of the guidelines for traditional non government backed Short Sale Programs

Effective February 1, 2015 the Making Home Affordable (MHA) Program has increased the HAFA relocation incentive for qualifying sellers to $10,000.

The updated program guidelines state that a borrower, tenant, or other non borrower occupant who live in the home as their primary residence and must relocate as part of the HAFA short Sale may be eligible to receive a relocation incentive of $10,000.

Like HARP , and HAMP the deadline for HAFA was also extended until December 31st 2016.

The Making Home Affordable Programs will expire on December 31st 2016

Call for more information - (866) 306-2115 Ext 301
Diona Miller, Real Estate Broker - CalBRE License 01899288

Mortgage Under Water // Distressed Loan

Mortgage Under Water // Distressed Loan

None of us can appreciate -- nor anticipate -- the future. Although we always believe it will never happen to us, once in a while, calamity strikes, and then we have to address these very hard and difficult questions.

You own a house, with a sizable mortgage. Suddenly, you (or your spouse) lost their job, and you cannot make the monthly mortgage payments.

There are a number of options you should immediately consider. However, the very first thing you should do is to talk with your lender. Don't just discuss your issues with a low-level employee. Try to go as high up the corporate ladder as you possibly can. And don't be afraid to be honest. Legitimate mortgage lenders will try to work with you, since they don't want to evict you and have to own and carry your house until they sell it.
Here are some of the options which are available to you.

1. Temporary indulgence. Here, the lender, at your request, may grant you a short period of time -- usually not more than three months -- in order to cure any delinquency. However, this is merely temporary relief, and by the end of that short period of time, the borrower must be completely current.

2. Repayment plan. Here, the borrower is given a fixed period of time -- usually not to exceed one year -- in which to bring the mortgage current by immediately making and continuing to make payments in excess of the monthly mortgage payment. It is important to get this repayment plan reduced to a written document, signed by both the lender and the borrower.

3. Special forbearance relief agreement. Here, the regular monthly mortgage payments are suspended or reduced for a period of up to eighteen months from the due date of the first unpaid monthly installment. At the conclusion of this relief period, the regular payments must be resumed; additionally, a comprehensive plan must be agreed upon for the repayment of the amount that has been suspended.

In this case, the lender will make a determination that the default is curable, and based on the current financial and appraisal data, the lender must be satisfied there is a likelihood that the borrower will be able to comply with the repayment plan. Clearly, the burden will be on you to document and justify the plan, so as to satisfy the lender's requirements.

If you are in the military, the Soldier's and Sailor's Relief Act provides various forms of relief, but you should check with your military or civilian lawyer to determine your eligibility under that Act.

4. A short sale. Here, the lender will authorize you to sell the property for what it is really worth, and the lender will get all the proceeds. Let us look at this example. The house can probably be sold at $295,000, but the mortgage is $350,000. The lender may allow you to sell the property for $295,000. The lender gets all the remaining sales proceeds; you get nothing from the sale. However, under this "short sale" approach, you will be relieved of your mortgage. In some cases -- depending on your financial situation -- the lender may want you to pay a portion of the mortgage shortfall; this depends on the lender and is clearly negotiable.

5. Deed in lieu of foreclosure. This is another remedy that may be available to you. Under this arrangement, you deed your property to the lender (or to whomever the lender designates) and this is in lieu of (instead of) foreclosure proceedings. This arrangement is an acceptable and customary procedure when, for example, the borrower is deceased and the estate is willing and able to transfer the property, or the borrower has filed Chapter 7 bankruptcy, and the trustee has abandoned interest in the property.

6. Foreclosure. Here, the lender will sell your property at auction (or in some states at the Courthouse), and you will lose your home and your credit rating (whatever is left of it. Legitimate lenders do not want to foreclose. and they will reluctantly start the process if all else has failed.

7. Bankruptcy. Your final option, of course -- which should be used only as a last resort -- is for you to file bankruptcy. When someone files for bankruptcy, there are many protections that automatically apply from the day the bankruptcy petition is filed with the Bankruptcy Court. The most important protection under the bankruptcy law is known as "the automatic stay." If you are in bankruptcy, no legal action can be taken against your house unless the lender requests the Court for permission to "lift the stay."

You cannot ignore your financial problem, hoping you will win the lottery or find some other immediate source of funds. The level of your cooperation is the most significant aspect that will determine how willing the lender is to similarly cooperate.