HAFA Overview Training- Agenda

Overview & Benefits of HAFA 2

HAFA Process 3

HAFA Policies 4

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What is HAFA? 1

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PART 1: What is HAFA?

PRESIDENT’S PLAN

Housing Affordability & Stability Plan (HASP)

Housing Affordability Refinance Program (HARP)

Low Cost Refinance Up To 125% Of Value

Housing Affordability Modification Program (HAMP)

Drop Payment To 31% Of Homeowner Gross Monthly Income

Housing Affordability Foreclosure Alternatives (HAFA)

Streamlined Short Sale Program33

HAFA PROGRAM

Overview of Treasury’s HAFA Program

Begins April 5, 2010

To qualify, borrowers must:

Have been considered for other foreclosure prevention options

Meet HAMP eligibility

Do not need to be delinquent

Servicer will set monthly mortgage payment during marketing period-not to exceed 31% of the borrowers gross monthly income

Servicers receive $1,500 incentive for short sales and deed-in-lieu

Borrowers receive $3,000 relocation assistance at closing

Borrowers are released from first mortgage lien within 10 business days from the date the servicer receives sale proceeds 4

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PART 2: HAFA Process

HAFA PROCESS

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PART 3: HAFA Policies

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● Ensure that the property is accurately priced for listing and marketed effectively

● Work to obtain an offer that is at or near the Fair Market Value

● Work with a borrower to make contact with the Mortgage Servicer

● Help the borrower in submitting all documentation that is needed

● Assist in negotiating the offer with junior lien holders, borrowers, and others involved in the transaction

● Ensure that the sale is an “arms length transaction”

● Work to facilitate and accelerate the closing process

HOW TO GET A FREDDIE MAC SHORT SALE OR DEED IN LIEU

DEED-IN-LIEU (DIL)

● Must have tried to do a short sale

● Must have had it listed for at least 90 days with no offers

● Must have had it listed with a REALTOR

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NON- HAFA SHORT SALES

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BENEFITS SUMMARYBenefits of HAFA Program

● Eliminate the need for potentially lengthy & expensive foreclosure proceedings

● Preserve conditions and value of the property

● Minimize the time a property is vacant

● Upfront pricing eliminates fake offers and low bids.

● Gives incentives to homeowners to participate.● Full release of Debt on First Mortgage● Freeze the foreclosure proceedings and give time to sell● Pre-approved pricing to listing agent

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