• Does not take effect until April 5, 2010
• Pertains to 1st Lien Non-GSE Mortgages
• Utilizes borrower’s financial information through HAMP
• Financial incentives provided to borrowers, servicers and investors
• Sets limits on lender response time
• Lender forfeits ability to pursue deficiency judgment
• Caps claims of subordinate lenders

• Property is borrower’s principal residence
• Loan is a 1st lien mortgage
• Originated before Jan 1, 2009
• Mortgage is delinquent or default is reasonably foreseeable
• Current unpaid balance is equal to or less than $729,750
• Borrower’s total monthly mortgage payment exceeds 31% of borrower’s gross income

• $3,000 to Borrowers for relocation costs
• Will be deducted from gross sale proceeds at closing
• $1,000 to Servicers for administration and processing fees
• Servicer may not charge borrower any processing fees and MUST pay all out-of-pocket expenses
• $1,000 to Investors for subordinate lien holder payoff
• For every three dollars spent to release liens, buyer or investor is reimbursed one dollar – capped at $3,000

Process & Timelines

• Please contact us for a detailed outline of how the HAFA program works specifically for your mortgage lender and your situation.