MHA Brochure

8/7/2019 MHA Brochure

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• There is no charge to apply or the ObamaAdministration’s Making Home Afordable Program.

• Assistance rom a HUD-approved housingcounselor is FREE.

• Beware o anyone who asks you to pay a ee inexchange or counseling or a loanmodi cation.

• Beware o anyone who pressures you to signpapers immediately.

• Do not sign your deed over to anyone or makea mortgage payment to anyone other thanyour mortgage servicer without seeking yourservicer’s approval directly.

Beware Of Foreclosure Rescue ScamsHelp Is Free!

MAKING HOME AFFORDABLE

The Obama Administration’s Making HomeAfordable Program is a critical part o theefort to stabilize the housing market and helpstruggling homeowners get relie and avoid

oreclosure.

Making Home Afordable includesopportunities or homeowners to modi yor re nance their mortgage to make theirpayments more afordable. The program hasrecently been expanded to help homeownerswho are unemployed or “underwater” (theyowe more on their mortgage than theirhome is worth). It also provides options orhomeowners who can no longer aford theirhome and are interested in a short sale ordeed-in-lieu o oreclosure.

There is no charge to apply or the MakingHome Afordable Program. I you are strugglingto pay your mortgage, you should contactyour mortgage servicer—the company towhich you pay your mortgage—to determinei you quali y or the program. A HUD-approvedhousing counselor can also work with you or

ree to help you determine i you are eligibleand help you apply or the program.

Visit MakingHomeAfordable.gov or call 1-888-995-HOPE (4673) 1





Second Lien Modi cation Program (2MP)

Many homeowners may be struggling tomake their monthly mortgage paymentsbecause they have a second lien. 2MP ofershomeowners a way to lower payments on their

second mortgage.Under 2MP, i your rst-lien mortgage was modi edunder HAMP and your second-lien mortgageservicer is a participant in 2MP, then your second-lienmortgage servicer may:

• Reduce the interest rate to one percent orsecond liens that pay both principal andinterest (amortizing);

• Reduce the interest rate to two percent orinterest-only second liens;

• Extend the term o the second lien to 40 years;

• I the principal was de erred (through orbearance) on the rst lien, a servicer must orbear the sameproportion on the second lien;

• I the principal was orgiven on the rst lien,a servicer must orgive the same proportion

on the second lien; although a servicer may, inits discretion, orgive a larger portion or all o the second lien and will receive incentives ordoing so.

As an alternative to a modi cation o the secondlien, a 2MP participating servicer may electto extinguish ( orgive) your second lien in itsentirety, in accordance with an investor servicing

agreement.

Visit MakingHomeAfordable.gov or a completelist o participating servicers.

Home A ordable Re nance Program (HARP)

Some homeowners may be able to paytheir mortgages on time, but are not able tore nance to take advantage o today’s lowinterest rates perhaps due to a decrease in the

value o their home. HARP assists homeownerswhose mortgages are current and held byFannie Mae or Freddie Mac re nance into amore afordable mortgage.

You may be eligible or HARP i you:

• Own a one- to our-unit home that is yourprimary residence;

• Have a mortgage owned or guaranteed byFannie Mae or Freddie Mac;

• Are current on your mortgage payments andhave not been more than 30 days late makinga payment within the past 12 months;

• Have a rst mortgage not exceeding 125percent o the current market value o your home;

• Have income su cient to support the newmortgage payments; and

• Can improve the long-term afordability orstability o your loan with the re nance.

To nd out i you have a mortgage held byFannie Mae or Freddie Mac:

• Fannie Mae: FannieMae.com/loanlookup or1-800-7FANNIE (Monday - Friday, 8 a.m. to 8 p.m. ET)

• Freddie Mac: FreddieMac.com/mymortgage or1-800-FREDDIE (Monday - Friday, 8 a.m. to 8 p.m. ET)

3Visit MakingHomeAfordable.gov or call 1-888-995-HOPE (4673)



Expanded Help for Homeowners who areUnemployed or Underwater

On March 26, 2010, the Obama Administrationannounced new program expansions to helphomeowners who are struggling to pay their

mortgage due to unemployment or becausethey are “underwater” (they owe more on theirmortgage than their home is worth).

Unemployment Program

Beginning August 1, 2010, all mortgage servicersparticipating in the Making Home AfordableProgram will provide eligible homeowners a

orbearance period during which their monthly

mortgage payments are reduced or suspendedwhile they seek re-employment. The minimum

orbearance period is three months, althougha mortgage servicer may extend the termdepending on applicable investor and regulatoryguidelines.

Unemployed borrowers must be receiving oreligible or unemployment bene ts and may notbe more than three months past due on theirmortgage when they apply or unemployment

orbearance.

Principal Reduction Alternatives for Homeownerswho are Underwater

Beginning in the all o 2010, mortgage servicersare required to evaluate every homeowner with

high negative equity (they owe more than 115percent o the value o their home) to determinei they can reduce the amount a homeownerowes to achieve an afordable monthly mortgage

payment. However, please note that although aservicer is required to evaluate the borrower ora HAMP modi cation which includes principalreduction, it is not obligated to actually modi ythe loan with principal reduction. Under thisprogram, homeowners earn principal reductionover a three-year period by success ully makingpayments in accordance with the modi ed loanterms.

These programs are not currently available orhomeowners with mortgages held by Fannie Maeor Freddie Mac.

For more detailed in ormation about these programs,

please visit MakingHomeAfordable.gov.

Visit MakingHomeAfordable.gov or call 1-888-995-HOPE (4673)

Home A ordable Foreclosure AlternativesProgram (HAFA)

Some homeowners may eel that they can nolonger aford their home, but want to avoid thenegative efects o oreclosure. The HAFA Programofers homeowners, their mortgage servicers,and investors incentives or completing a shortsale or deed-in-lieu o oreclosure. HAFA enableshomeowners to transition to more afordablehousing while being released rom theirmortgage debt.

Short Sale: In a short sale, the servicer allowsthe homeowner to list and sell the mortgaged

property with the understanding that the netproceeds rom the sale may be less than the totalamount due on the rst mortgage.

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Visit MakingHomeAfordable.gov or call 1-888-995-HOPE (4673)

Home A ordable Foreclosure AlternativesProgram (HAFA) (Continued)

Deed-in-Lieu o Foreclosure: Generally, i theborrower makes a good aith efort to sell theproperty but is not success ul, a servicer mayconsider a deed-in-lieu o oreclosure. With adeed-in-lieu, the borrower voluntarily trans ersownership o the property to the servicer—provided the title is ree and clear.

These options are available or homeowners who:

• Do not quali y or a trial payment planwhich is required prior to a permanent HAMP

modi cation;

• Do not success ully complete the trial paymentplan;

• Miss at least two consecutive payments duringHAMP modi cation; or

• Request a short sale or deed-in-lieu o oreclosure.

Under the program, a homeowner can receive$3,000 to help with relocation costs a ter asuccess ul short sale closing or deed-in-lieu. I there are liens and encumbrances in additionto the rst mortgage, the borrower must obtainlien releases rom those creditors—underHAFA, homeowners can receive up to $6,000 o

assistance to release those liens.

TAKE ACTION TODAY

• To learn more about the Making HomeAfordable Program, visitMakingHomeAfordable.gov.

• Contact your mortgage servicer—the company to which you pay yourmortgage— to determine i you quali y.

• Call 1-888-995-HOPE (4673) orin ormation about the Making HomeAfordable Program and to speak witha HUD-approved housing counselor

or ree. I you are having di culties,call the hotline and ask or “MHA Help”.

• Respond quickly to requests orin ormation by your mortgage servicer. They will only be able to help i theyhave all o the in ormation they need.

• Be cautious o scams. There is no chargeto apply or the Making Home AfordableProgram. Beware o anyone who asks youto pay a ee in exchange or counselingor a mortgage modi cation.

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Visit MakingHomeAfordable.govor call 1-888-995-HOPE (4673)

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Documents

MHA Brochure