HAFA, HAMP,HARP,HARP2.0 Colorado Springs Short Sale Information

Staying on top of the string of programs created to
help owners caught up in the perfect storm of a high
unemployment, rampant underemployment and declining
home values, can be confusing to say the least. Here’s
a brief overview of the acronyms spawned by the
foreclosure crisis:
HAFA—The Home Affordable Foreclosure Alternatives
program was designed to help homeowners to avoid
the negative effects of foreclosure by establishing
incentives for completing a short sale or a deed-in-lieu
of foreclosure. In a short sale, the loan servicer accepts
a loan payoff amount from an underwater borrower
that is less than the amount actually owed on the
first mortgage. With a deed-in-lieu of foreclosure, the
borrower transfers ownership of the property to the
loan servicer. HAFA provides for $3,000 in relocation
assistance after a successful short sale or deed-in-lieu.
HAMP—The Home Affordable Modification Program
was designed to help homeowners who are no longer
able to make mortgage payments on time due to
decreased income or an increase in the monthly
payment amount. HAMP reduces a homeowner’s
monthly mortgage payment to 31 percent of gross
income following a series of steps on the part of the
mortgage servicer that can include a rate reduction,
a term extension of up to 40 years, deferred principal
payments, and (possibly) a lowering of principle.
HARP—The Home Affordable Refinance Program
enables homeowners whose mortgages are backed
by Fannie Mae or Freddie Mac and who owe more than
their home it’s worth, to refinance and take advantage
of today’s historically low interest rates. Originally,
HARP was only available to homeowners whose first
mortgage did not exceed 125 percent of the current
market value of their home.
HARP 2.0—Starting Dec. 1, 2011, the 125 percent
loan-to-value ratio will be eliminated, enabling eligible
borrowers to refinance under HARP regardless of how
far underwater they are on their mortgage.

Below is a link to this free report
http://www.chuckshomerescueplan.com/Tipping-the-Scales-Toward-Foreclosure.aspx


ChuckWartman.com
(719) 231-5525