If you are facing a difficult time due to a finical hardship...you have options...
The first thing you want to do is call your mortgage servicer. Tell them you are having problems. If your loan is backed by Fannie Mae, ask if you can modify your loan with the HAMP program. If you do not qualify for the HAMP program, please give Nancy Grogan a call 850-377-7578 to discuss your other options.
What is HAMP ? Home Affordable Modification Program.
HAMP allows eligible mortgagees lower their monthly payments to 31% of their pre-tax income, or lower, through a loan modification. Modifying the home loan must equal net more value than foreclosing would.
The adjustments are introduced on a temporary basis but are made permanent after the homeowner makes three on-time payments.
How do you qualify?
1. If your home is your primary residence
2. The amount you owe on your first mortgage is equal to or less than $729,750
3. You got your current mortgage before Jan. 1, 2009
4. Your payment on your first mortgage, including taxes, insurance, hoa dues, principal and interest is more than 31% of your current gross income.
If modification does not work for you, the next step is the HAFA Program.
About HAFA - Home Affordable Foreclosure Alternatives Program
Who is Eligible for HAFA?
Most homeowners facing financial hardship are eligible. As a rule, if a homeowner is eligible for HAMP but cannot pay the mortgage, then he or she is eligible for an assisted short sale through HAFA. As of August 1, 2010, loans owned or guaranteed by Fannie Mae or Freddie Mac now qualify.1, 2 Servicers must consider possible HAMP eligible borrowers for HAFA within 30 calendar days if the borrower has met one or more of the following criteria3:
· Does not qualify for a HAMP Trial Period Plan
· Does not successfully complete a HAMP Trial Period Plan
· Is delinquent on a HAMP modification by missing at least two consecutive payments
· Requests a short sale or deed-in-lieu4
The good news is:
HAFA Requires borrowers to be fully released from future liability for the first mortgage debt and, if the subordinate lien holders receive an incentive under HAFA, those debts as well (no cash contribution, promissory note, or deficiency judgment is allowed).
Provides financial incentives: $3,000 for borrower relocation assistance.
Nancy Grogan is a Certified Distressed Property Expert and wants distressed homeowners to know there are other options than a foreclosure—options which may lessen the devastation to your credit and your family. By understanding alternatives to foreclosure and acting quickly, you and Nancy Grogan can work to resolve your current dilemma through other methods like a short sale.
