Tierra Capital Corp ~ The Sam Shuck Team


Direct ~ (619) 733-2505 
Email ~ sold@samshuck.com               

Making Home Affordable (MHA) Program

After bailing out the banks and auto industry the federal government is attempting to help address the key issue with today real estate market - negative equity.  According to Zillow's 5/10/10 press release, 22.9% of homes in the San Diego's Metro area are in a negative equity position (mortgage amount greater than estimated value of the home).   The HAFA program will provide full release of all mortgage responsibilities and a $3,000 payment to the seller for approval of this program.


If you having a tough time making your monthly mortgage payments because of an unforeseen hardship, don't wait!  Contact me today!

 

About Making Home Affordable (MHA)

In March 2009, the Obama Administration published detailed program guidelines for the Making Home Affordable (MHA) Program. Mortgage servicers were authorized to begin modifications under the plan immediately. With the assistance of several government agencies, GSEs, and servicers - this effort involved the development and refinement of servicer guidelines, modification documents, and data collection and modeling tools. Key servicer documents and tools required to service HAMP loan modifications are stored and maintained on HMPadmin.com. This site provides general guidelines and overview documents available to the public as well as secure access to core tools and documents needed to complete the loan modification process. HMPadmin.com continues to evolve just like the Making Home Affordable Program.

The Government bailout for homeowners is a more a less a three step process.

  1. Home Affordable Modification Program (HAMP)

  2. Second Lien Modification Program (2MP)

  3. Home Affordable Foreclosure Alternative (HAFA)

 

 

 

Home Affordable Foreclosure Alternatives (HAFA) Program

 

Many homeowners may feel that they can no longer afford their home, but want to avoid the negative effects of foreclosure. The Home Affordable Foreclosure Alternatives (HAFA) Program offers homeowners, their mortgage servicers, and investors an incentive for completing a short sale or deed-in-lieu of foreclosure. With these options, under HAFA, a homeowner leaves their home to transition to more affordable housing and alleviate the mortgage debt they owe.

These options are available for homeowners who: 1. do not qualify for a trial mortgage modification under the Making Home Affordable Program; 2. do not successfully complete the trial period for their modification; 3. miss at least two consecutive payments during their modification period; or 4. request a short sale or deed-in-lieu of foreclosure.

 

Short Sale

In a short sale, the servicer allows the homeowner to list and sell the mortgaged property with the understanding that the net proceeds from the sale may be less than the total amount due on the first mortgage. 

 

Deed-in-Lieu of Foreclosure

Generally, if the borrower makes a good faith effort to sell the property but is not successful, a servicer may consider a deed-in-lieu of foreclosure. With a deed-in-lieu, the borrower voluntarily transfers ownership of the property to the servicer— provided the title is free and clear of mortgages, liens, and encumbrances.

The HAFA Program streamlines both of these options to make them easier for a homeowner to work with their servicer. Under the program, a homeowner can receive $3,000 to help with relocation costs.

Mortgage servicers and investors write their own guidelines under the Federal requirements to determine how to implement the program.

 

Making Home Affordable and Other Options to Remain in Your Home

Mortgage servicers who participate in the Making Home Affordable Program are required to evaluate homeowners for a Home Affordable Modification before evaluating them for other options

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