HAMP, HAFA too many acronyms, lots of HOOPS

The HAFA (Home Affordability Foreclosure Alternatives) program is actually starting to take off.

The payoffs of jumping thru their hoops can be rewarding, if you know what to expect and how to react.  You can actually come out of this with some cash!

I am going to blog for the next couple weeks on how you can decide if the program will work for you.

First off, you have to be eligible for HAMP in order to be let into the HAFA program.  HAMP  stands for Home Affordable Modification Program, aka loan mods.  (this program was a failure, if you did not know already, but the requirements have not changed.)

Eligibility Requirements:

*Loan is owned by FreddieMac or Fannie Mae or is administered by a participating servicer.  To look up your mortgage to find out this information, go here www.makinghomeaffordable.gov/loan_lookup.html and here, www.makinghomeaffordable.gov/contact_servicer.html It is important to remember that not all servicers or investors HAVE to participate.  It is a voluntary program.

*Homeowner occupies the home as their primary residence.

*First mortgage is in foreclosure, payments are delinquent or are going to be very soon.

*Your loan has to have closed before 1/1/2009

*Loan amount is $729,750 or less (for single unit).  Where the heck did they come up with that number?

*Loan has not been previously modified under HAMP.

*First mortgage debt-to-income ratio is over 31%  (take mortgage amount and divide by your take home pay)

Well, that is enough homework for one day.