Principal Reduction Alternative (PRA)

If your home is currently worth significantly less than you owe on it, MHA's Principal Reduction Alternative (PRA) was designed to help you by encouraging mortgage servicers and investors to reduce the amount you owe on your home. More than 100 servicers participate in HAMP and can evaluate homeowners for principal reduction. Participating servicers are required to develop written standards for PRA application. The largest servicers include Bank of America, CitiMortgage, JP Morgan Chase, and Wells Fargo.

Eligibility
You may be eligible for PRA if: Your mortgage is not owned or guaranteed by Fannie Mae or Freddie Mac. You owe more than your home is worth. You occupy the house as your primary residence. You obtained your mortgage on or before January 1, 2009. Your mortgage payment is more than 31 percent of your gross (pre-tax) monthly income. You owe up to $729,750 on your 1st mortgage. You have a financial hardship and are either delinquent or in danger of falling behind. You have sufficient, documented income to support the modified payment. You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.

If You Have a Second Mortgage

If you have a home equity loan, HELOC, or some other second lien that is making it difficult for you to keep up with your mortgage payments, learn more about this MHA program.

Second Lien Modification Program (2MP)

If your first mortgage was permanently modified under HAMPSM and you have a second mortgage on the same property, you may be eligible for a modification or principal reduction on your second mortgage as well, through MHA's Second Lien Modification Program (2MP). 2MP works in tandem with HAMP to provide comprehensive solutions for homeowners with second mortgages to increase long-term affordability and sustainability. If the servicer of your second mortgage is participating, they can evaluate you for a second lien modification.

Eligibility
You may be eligible for 2MP if you meet all of the following criteria:
11 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

Your first mortgage was modified under HAMP. You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction. You have not missed three consecutive monthly payments on your HAMP modification.

FHA Home Affordable Modification Program (FHA-HAMP)

FHA, VA and USDA all offer mortgage modification programs for struggling homeowners designed to lower monthly mortgage payment to no more than 31 percent of the homeowner's verified monthly gross (pre-tax) income making monthly mortgage payments much more affordable. If you have a loan that is insured or guaranteed by the Federal Housing Administration (FHA), you may be eligible for a program offered through that government agency. For information on FHA and participating servicers, call FHA's National Servicing Center at (877) 622-8525.

Veteran's Administration Home Affordable Modification (VA-HAMP)

FHA, VA and USDA all offer programs for struggling homeowners that strive to lower your monthly mortgage payment to 31 percent of your verified monthly gross (pre-tax) income making monthly mortgage payments much more affordable. If you have a loan that is insured or guaranteed by the Department of Veterans Affairs (VA), you may be eligible for a program through that government agency. Call the Veterans Affairs Regional Loan Center at (877) 827-3702. Visit HomeLoans.va.gov.

Get Help if Unemployed

MHA has programs designed to provide assistance to unemployed homeowners struggling to keep up with their payments.

Home Affordable Unemployment Program (UP)

If you are unemployed and depending on your situation, MHA's Home Affordable Unemployment Program (UP) may reduce your mortgage payments to 31 percent of your income or suspend them altogether for 12 months or more. Program ends December 31, 2012.

Eligibility
You may be eligible for UP if you meet all of the following criteria: You are unemployed and eligible for unemployment benefits. You occupy the house as your primary residence. You have not previously received a HAMPSM modification.

12 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

You obtained your mortgage on or before January 1, 2009. You owe up to $729,750 on your home.

Program Availability
More than 100 HAMP-participating servicers can offer UP to eligible unemployed homeowners. You may be required to make a partial payment, not to exceed 31 percent of your verified monthly gross (pre-tax) income including unemployment benefits. You will be evaluated for a HAMP mortgage modification at the end of your UP forbearance period if it is available at that time. UP is not currently available for homeowners with mortgages held by Fannie Mae and Freddie Mac; however, both have their own forbearance arrangements for unemployed homeowners. Please contact your mortgage servicer to see if you are eligible.

Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HHF)
Early in 2010, Treasury announced that the Hardest Hit FundSM would provide more than $7.6 billion in aid for homeowners in states hit hardest by the economic crisis. Since then, state housing finance agencies have used the fund to develop programs that stabilize local housing markets and help families avoid foreclosure. Hardest Hit Fund programs complement the Making Home Affordable Program but are not limited to homeowners eligible for Making Home Affordable. Hardest Hit Fund programs vary state to state, but may include: Mortgage payment assistance for unemployed or underemployed homeowners Principal reduction to help homeowners get into more affordable mortgages Funding to eliminate homeowners' second lien loans Help for homeowners who are transitioning out of their homes and into more affordable places of residence. In total, $7.6 billion have been allocated to 18 states plus the District of Columbia. If you live in one of these states or DC, contact your housing finance agency's program office: Alabama, Arizona, California, Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, Mississippi, Nevada, New Jersey, North Caroline, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, and Washington, DC.
13 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

Get Help With Fallen Home Value

If your home's value has fallen in recent years, MHA has programs designed to help bring what you owe and what you pay on your home more in line with its new valuation.

Home Affordable Refinance Program (HARP)

If you're not behind on your mortgage payments but have been unable to get traditional refinancing because the value of your home has declined, you may be eligible to refinance through MHA's Home Affordable Refinance Program (HARP). HARP is designed to help you get a new, more affordable, more stable mortgage. HARP refinance loans require a loan application and underwriting process, and refinance fees will apply.

Eligibility
Your mortgage company can tell you who owns your loan. After finding out whether your mortgage is owned by Fannie Mae or Freddie Mac, see if you may be eligible for a Home Affordable Refinance. You may be eligible for HARP if you meet all of the following criteria: The mortgage must be owned or guaranteed by Freddie Mac or Fannie Mae. The mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. The mortgage cannot have been refinanced under HARP previously unless it is a Fannie Mae loan that was refinanced under HARP from March-May, 2009. The current loan-to-value (LTV) ratio must be greater than 80%. The borrower must be current on the mortgage at the time of the refinance, with a good payment history in the past 12 months.

Program Availability
Ask your mortgage servicer (the company to which you make your mortgage payments) if they participate in HARP. Not all mortgage servicers do. Contact Fannie Mae or Freddie Mac for help in determining if you may be eligible for HARP. Program ends December 31, 2013.

Steps to HARP Refinance

Determine whether your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac by visiting their respective Loan Lookup Tools. Contact your current mortgage servicer or another that is approved by Fannie Mae or Freddie Mac to inquire about HARP. Compare rates and costs with additional mortgage companies to ensure best refinance terms. Visit FannieMae.com or call (800)7Fannie.
14 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

Visit FreddieMac.com, call (800)Freddie.

Does Fannie or Freddie Own Your Loan?

Visit the Loan Look Up website to determine if your loan is held by Fannie Mae or Freddie Mac. If your mortgage is owned by Fannie Mae or Freddie Mac, you may be eligible for a Home Affordable Refinance and take advantage of lower interest rates. You can find out if Fannie Mae or Freddie Mac owns your loan directly by clicking on the links below.

1-800-7FANNIE (8am to 8pm EST) www.fanniemae.com/loanlookup

1-800-FREDDIE (8am to 8pm EST) www.freddiemac.com/mymortgage

FHA Refinance for Borrowers in Negative Equity (FHA Short Refinance)

If you're not behind on your mortgage payments but owe more than your home is worth, FHA Short Refinance may be an option that your mortgage servicer will consider. FHA Short Refinance is designed to help homeowners refinance into more affordable, more stable FHA-insured mortgage. If your current lender agrees to participate in this refinance, they will be required to reduce the amount you owe on your first mortgage to no more than 97.75 percent of your home's current value.

Eligibility
You may be eligible for FHA Short Refinance if you meet the following criteria: Your mortgage is not owned or guaranteed by Fannie Mae, Freddie Mac, FHA, VA or USDA. You owe more than your home is worth. You are current on your mortgage payments. You occupy the house as your primary residence. You are eligible for the new loan under standard FHA underwriting requirements. Your total debt does not exceed 55 percent of your monthly gross income. You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

Program Availability
Participation of mortgage servicers is voluntary. Contact your mortgage servicer and ask whether they participate in FHA Short Refinance.
15 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

For More Information

With questions about FHA Short Refinance, contact the FHA National Servicing Center at (877) 622-8525 or HUD.gov/offices/hsg/sfh/nsc/nschome.cfm.

Treasury/FHA Second Lien Program (FHA2LP)

If you have a second mortgage and your first mortgage servicer agrees to participate in FHA Short Refinance, you may be eligible to have your second mortgage on the same home reduced or eliminated through the FHA Second Lien Program (FHA2LP). If your second mortgage servicer agrees to participate, the total amount of your mortgage debt after the refinance cannot exceed 115 percent of your home's current value.

Eligibility
You may be eligible for FHA2LP if you meet the following criteria: You are eligible for FHA Short Refinance. You obtained your mortgage on or before January 1, 2009. You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

Program Availability
If the servicer of your first mortgage agrees to an FHA Short Refinance and you have a second mortgage on the same home, the first mortgage servicer will work with the second mortgage servicer to reduce or eliminate the second mortgage. More than a dozen mortgage servicers have agreed to review homeowners for FHA2LP when the first mortgage servicer has agreed to a refinance under FHA Short Refinance. For more information on FHA Short Refinance and FHA2LP, call FHA's National Servicing Center at (877) 622-8525.

Leave your Home and Avoid Foreclosure

If the cost of homeownership has become too much to bear, the MHA Home Affordable Foreclosure Alternatives Program (HAFA) allows you to transition out of your home and avoid foreclosure with $3,000 in relocation assistance and peace of mind.

16 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

Home Affordable Foreclosure Alternatives (HAFA) Program

If you can't afford your mortgage payment and it's time for you to transition to more affordable housing, the Home Affordable Foreclosure Alternatives (HAFA) program is designed for you. HAFA provides two options for transitioning out of your mortgage:

A Short Sale Deed-in-Lieu (DIL) of foreclosure.

In a short sale, the mortgage company lets you sell your house for an amount that falls "short" of the amount you still owe. In a DIL, the mortgage company lets you give the title back, transferring ownership back to them. In either case, HAFA offers benefits that make the transition as favorable as possible: You can get free advice from HUD-approved housing counselors and licensed real estate professionals.

Unlike Conventional Short Sales,

A HAFA short sale completely releases you from your mortgage debt after selling the property. This means you will no longer be responsible for the amount that falls "short" of the amount you still owe. The deficiency is guaranteed to be waived by the servicer. In a HAFA short sale, your mortgage company works with you to determine an acceptable sale price. HAFA has a less negative effect on your credit score than foreclosure or conventional short sales. When you close, HAFA provides $3,000 in relocation assistance.

Eligibility
You may be eligible for HAFA if you meet all of the following criteria: You live in the home or have lived there within the last 12 months. You have a documented financial hardship. You have not purchased a new house within the last 12 months. Your first mortgage is less than $729,750. You obtained your mortgage on or before January 1, 2009. You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.
17 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

Program Availability
HAFASM is available for mortgages that are owned or guaranteed by Fannie Mae and Freddie Mac or serviced by over 100 HAMPSM participating mortgage servicers.

Steps to Apply for HAFA

The sooner you seek help, the more options you'll have. If this is the first time you've worked with your mortgage company, they will want to ensure that you have been considered for other options to keep your home before they move forward with HAFA. When it's time for HAFA, be prepared to provide the following: 1. 2. 3. 4. Signed Hardship Affidavit or Request for Mortgage Assistance (RMA) If you've already received an offer, be prepared to submit these additional forms: Alternative Request for Approval of Short Sale (Alternative RASS) Executed sales contract

Step 3. Take Action, Do Something About it. Apply for the Program that best fits your needs. These programs are not forever.
If you meet all of the criteria in the eligibility list above,

Action Step 3.1: Check program availability Call.

Contact your mortgage servicer (the company to which you make your mortgage payments) to see if they participate in the program. Not all servicers do. If yours does not, they may offer their own foreclosure prevention solutions that might be best suited to your situation. If your mortgage servicer does participate in the MHA program but makes the determination that you are not eligible for a HAMP modification, they may offer you modification alternatives of their own.

We can make the phone call for you and determine other alternatives available to you.
Action Step 3.2: You will need to complete and provide the following to your HAMP participating mortgage servicer.
Request for Mortgage Assistance (RMA)
18 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

IRS Form 4506T-EZ or 4506-T Verification of Income

If you decide to work with us, we will provide you with the complete forms and documents your mortgage servicer will require from you.
Action Step 3.2: Gather your information.

Proof of Income Checklist

Your mortgage servicer needs the documents listed below to verify the income of each borrower.
For each borrower who receives a salary or hourly wages, you will need proof of the following: Copy of your two most recent pay stubs that show year-to-date earnings. For each borrower who is self-employed: Most recent quarterly or year-to-date profit/loss statement. We can help you prepare your profit and loss statement Two Years Federal Business Income Tax Returns and signed. (2009 and 2010)

Current Bank Statements Two Years Personal Federal Income Tax Returns and signed. (2009 and 2010) Other Income 1. You will need a benefit statement, or letter, or agreement that states the amount, frequency, and duration of the benefit, or other income you will use as qualifying income. social security disability or death benefits pension adoption assistance unemployment public assistance alimony or child support 2. Two most recent bank statements showing receipt of such payment 3. Copies of the most recently filed and signed federal tax return with all schedules, including Schedule E Supplemental Income and Loss. Note: You are not required to disclose Child Support, Alimony or Separation Maintenance income, unless you choose to have it considered by your servicer.

Note: If you are a real estate investor and you are renting your properties you will need to provide more documentation, including the declaration page of your home insurance.

Gather your financial information.

The more prepared you are, the faster you can get help. Gather documentation detailing your mortgage, your current and past financial situation and the reasons you are having financial
19 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012

difficulty. With that information in hand, you can then call 888-995- HOPE (4673) or your mortgage company to find out if you are eligible for a Making Home Affordable Program. Spending time up front gathering these documents pays off in a smoother, more efficient process.

What You Will Need

Exactly what you will need to provide your mortgage company to apply for mortgage assistance through Making Home Affordable varies somewhat from program to program and from servicer to servicer but they all require documentation on your loan, your finances and your circumstances. To maximize your options, you will need to gather this documentation as quickly and completely as you can. You will need to download, fill out and copy several forms that you will find on this website. And you will need to compile all your forms and documents into an organized file that your housing expert or mortgage servicer can understand and evaluate.

To apply for help through the Making Home Affordable Program be prepared to provide:

Monthly mortgage statement Information about other mortgages on your home, if applicable Two most recent pay stubs for all household members contributing toward the mortgage payment Last two years of tax returns If self-employed, the most recent quarterly or year-to-date profit and loss statement Documentation of income you receive from other sources (alimony, child support, social security, etc.) Two most recent bank statements A utility bill showing homeowner name and property address Unemployment insurance letter, if applicable Account balances and minimum monthly payments due on all of your credit cards Information about your savings and other assets It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.)

In addition, you need to complete and present the following forms:

Request for Mortgage Assistance (RMA) IRS Form 4506T-EZ or 4506-T

If you've already received an offer from someone to purchase your home, be prepared to submit these additional forms:

Alternative Request for Approval of Short Sale (Alternative RASS) Executed sales contract

What to Expect from Making Home Affordable

Getting help through the MHA program requires some effort. Homeowners who prepare are far more likely to get their most positive outcome. So expect to spend some time at MakingHomeAffordable.gov learning about your options, your eligibility and the steps you must take to apply for assistance. Learn all
20 This Informational and Comprehensive Report was compiled from the http:://www.makinghomeaffordable.gov by Catherine Fleishman, Real Estate Broker, 10411 Motor City Drive, Suite 500, Bethesda, Maryland 20817 email:info@thehomesaint.com, and is a free download from http://www.thehomesaint.com, January 24,2012