There now is viable & substantial help for homeowners who are feeling the pressures of the current economic condition, the fall of the real estate market, and struggling to make their mortgage payments or are ‘upside down’ in the value of their home.
The federal government, along with Fannie Mae & Freddie Mac have new programs in place to assist homeowners with options in preserving their homes & dignity. There is NO charge to apply for these programs. The U.S. Treasury Department released their’s last year and Fannie Mae/Freddie Mac set theirs in motion in June of this year. It’s called the Making Home Affordable Program. There are several options within this program that homeowners can apply for, depending on their current financial situation and ‘Hardship’, but the two most popular are the HAMP (Home Affordable Modification Program) & HAFA (Home Affordable Foreclosure Alternatives) programs.
In short, the HAMP program is designed to ‘modify’ your mortgage loan. If the for some reason you are unable to qualify for that option, then you automatically are moved to the HAFA program for a Short Sale.
The programs are essentially geared to mainstream the Short Sale & Foreclosure process for all parties concerned. (E.g. Lenders, Sellers, Buyers, Real Estate Professionals). With the new guidelines in place everyone will follow the same model across the board & therefore shorten the time it takes to get a loan modification or short sale approval, which will eliminate a possible foreclosure and keep the service providers (mortgage banks) working in the same fashion.
Keep in mind however that the process is still like the like the ‘old’ way of getting a loan modification or short sale approval, you must apply and meet certain criteria. Don’t let it deter you though - the good news is that there are options now & those servicers/mortgage companies who are participating in the program are obligated to offer you those options. And the best part of the program is that you can earn FREE MONEY! If you’re under the program and qualify you can receive $3,000 to help you with relocations costs, providing you have a successful short sale or Deed-In-Lieu of Foreclosure.
This program will not last forever…It is due to expires on December 31, 2012, so if you are one of the many consumers who are struggling to make your mortgage payment and want more information about these programs please go to:
www.MakingHomeAfforadable.gov or call 1-888-995-HOPE (4673).
For Fannie Mae’s HAFA program: www.efanniemae.com/sf/servicing/hafa/
For Freddie Mac’s HAFA: www.freddiemac.com/singlefamily/servicehafa.html
To determine if your mortgage loan is held by Fannie Mae or Freddie Mac please call:
Fannie Mae 1-800-7FANNIE or Freddie Mac1-800-FREDDIE (Monday-Friday 8am to 8pm ET)
We in the Real Estate industry and those of us that are HAFA certified are really excited about this program. It means fewer headaches for everyone involved in the process and better results, especially for the clients.