12. HAFA Offers Transition from Homeownership
When the Home Affordable Foreclosure Alternatives
weight of (HAFA) includes short sale and deed‐in‐lieu of
homeownership foreclosure (DIL) when other options exhausted.
becomes too
great, there are Think HAFA when:
still options to •Homeowner doesn’t qualify for a modification.
avoid •Homeowner’s modification doesn’t work out.
foreclosure. •Homeowner has moved and needs to sell.
•The mortgage has become unaffordable, and
homeowner needs a way out.
March 2012 | Making Home Affordable 12
13. HAFA Advantages Ease the Transition
HAFA offers • Streamlined process no longer requires
advantages verification of income.
over other • HAFA’s waiver of deficiency releases
alternatives. homeowner from remaining mortgage debt.
• Homeowner receives $3,000 in relocation
assistance.
• Homeowner’s path back to homeownership
may be shorter than with foreclosure or short
sale with deficiency.
March 2012 | Making Home Affordable 13
17. Resources
Resources are • Escalate cases to the HAMP Solution Center:
in place to help. escalations@HMPadmin.com or (866)939‐4469.
• FannieMae.com, (800)7Fannie, KnowYourOptions.com,
resource_center@fanniemae.com.
• FreddieMac.com, (800)Freddie and select option 2.
• For assistance with FHA loans, contact the FHA National
Servicing Center at (877)622‐8525 or
HUD.gov/offices/hsg/sfh/nsc/nschome.cfm.
• For assistance with VA loans, call (877)827‐3702 or visit
HomeLoans.va.gov.
• For help with USDA RHS loans, contact the Centralized
Servicing Center at (800)414‐1226.
March 2012 | Making Home Affordable 17
18. Discussion/Questions
Carol Lambert
U.S. Department of the Treasury
Homeownership Preservation Office
Carol.Lambert@Treasury.gov
March 2012 | Making Home Affordable 18
19. Hardest Hit Fund Supports 18 States Plus DC
HHF States
Visit MHA.gov Alabama
for more Arizona
California
information. Florida
Georgia
Illinois
Indiana
Kentucky
Michigan
Mississippi
Nevada
New Jersey
North Carolina
Ohio
Oregon
Rhode Island
South Carolina
Tennessee
Washington, D.C.
March 2012 | Making Home Affordable 19
22. Keep Your Home California
Program Objectives
• Develop programs that help prevent avoidable
foreclosures for eligible low and moderate income
homeowners
• Design programs to address financial hardships from one
or more aspects of the current foreclosure crisis
• Provide mortgage payment assistance to help
homeowners that cannot help themselves due to
hardships and negative equity
22
23. General Homeowner Eligibility
Requirements
• Own and occupy home as primary residence
• Meet low and moderate income limits (120% AMI)
• Adequate income to sustain mortgage payments after
reinstatement and/or modification, according to
participating servicer guidelines
• Complete and sign a Hardship Affidavit – documented
reason for hardship
• Mortgage loan is delinquent or in imminent default
23
24. General Property Eligibility
Requirements
• Property must be located in California
• Property must be owner occupied, principal residence
• Mortgage is the first lien loan
• Current unpaid principal balance of first mortgage
cannot exceed GSE limit (currently $729,750)
• Property must not be abandoned, vacant or
condemned
24
25. Four Programs
• Unemployment Mortgage Assistance
• Mortgage Reinstatement Assistance Program
• Principal Reduction Program
• Transition Assistance Program
25
26. Unemployment Mortgage Assistance
• Help eligible homeowners who have experienced
involuntary job loss and are receiving California EDD
unemployment benefits
• Provides temporary benefit assistance in the form of a
mortgage payment subsidy for maximum of 9 months
• Monthly benefit up to $3,000 or 100% of the first lien
mortgage loan PITIA, whichever is less
– Maximum per household assistance is $27,000
– Benefit assistance does not include servicer corporate
advances or fees
26
27. Mortgage Reinstatement Assistance
Program
• Assist eligible homeowners by providing reinstatement
assistance for first lien mortgage loan
• Benefit assistance up to $20,000 per household –
participation is limited to one‐time payment
• Can be combined with a loan modification that may or
may not include the Principal Reduction Program
• Can follow UMA if homeowner hardship is not cured
during unemployment benefit assistance period
27
28. Principal Reduction Program
• Help homeowner attain affordable monthly payment
with goal of 31% front‐end ratio
• Benefit assistance up to $50,000 per household
• Designed to work in conjunction with standard HAMP
and proprietary loan modification programs
• One‐to‐one financial match from participating investors
provides homeowners with a maximum first lien
principal reduction of up to $100,000
• Homeowners earn principal forgiveness over time; must
occupy home and maintain payment in good standing
28
29. Transition Assistance Program
• Provide transition assistance benefits to homeowners
who can no longer afford their home and want to avoid
foreclosure – help homeowners make a smooth
transition to alternative housing
• Benefit assistance up to $5,000 per household; when
combined with HAFA assistance is limited to $2,000 per
household
• Benefit assistance provided in conjunction with investor
approved short sale and deed‐in‐lieu transactions
• Servicers to follow HAFA guidelines for allowable costs
29
30. How to Apply
• Call the Keep Your Home California Counseling and
Processing Center at 888‐954‐KEEP (5337)
– Hours: Mon – Fri 7am – 7pm; Sat 9am – 3pm; Closed Sun
• Contact one of the HUD approved counseling agencies
certified to conduct Keep Your Home California
counseling sessions.
– A list of participating counseling agencies is available at:
http://www.keepyourhomecalifornia.org/counseling.htm
30
31. Application Process
• Counseling sessions typically take 30‐45 minutes to
complete. All homeowners listed on the mortgage must
be on the line to apply.
• If homeowners are determined preliminarily eligible at
the end of their session, a comprehensive packet
explaining next steps is sent and the homeowner must
return required documents
• Once documents are received, KYHC will work with
servicer to make final determination on approval to
fund.
32. Items Homeowner Should Have Available
When They Call
• Paper and something to write with for notes
• Mortgage loan number
• Recent wage or income information
• Current monthly expenses
• Explanation of hardship
