Foreclosure Alternatives

If you have a reverse mortgage, please read Foreclosure Information – Reverse Mortgages.

HOME AFFORDABLE FORECLOSURE ALTERNATIVES

The Home Affordable Foreclosure Alternatives (“HAFA”) program provides homeowners with an alternative to resolve their mortgage debt and avoid foreclosure. If you are unable to qualify for a loan workout, you will have the ability to sell your home through a short sale if the amount you owe on your mortgage is more than the value of your home. Through the short sale you will be able to resolve your debt. Please see below for eligibility requirements.

You may be eligible to apply if you meet all of the following:

• You have not purchased a new house within the last 12 months.
• You have a documented financial hardship.
• Your first mortgage amount is less than $729,750.00.
• 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.

*These eligibility criteria are for guidance only. Please call us at 719-260-7777 to determine if you qualify for HAFA. To apply for a preapproved Short Sale Agreement (“SSA”), please provide the following documents:

• Hardship affidavit/request for modification and affidavit (“RMA”)
• Evidence of residency
• Subordinate lien documentation
• Form of full financial disclosure documentation required

To submit an existing offer using an Alternative Request for Approval of Short Sale (“Alternative RASS”) please provide the following documents:

• Hardship affidavit/request for modification and affidavit (“RMA”)
• Evidence of residency
• Subordinate lien documentation
• Form of full financial disclosure documentation required
• Property listing agreement
• Purchase and sale contract
• Copy of earnest money check
• Preapproval letter from buyer
• HUD-1

To establish property value, a valuation of your home will be obtained to determine the current market value with one of the following services:

• Broker price opinion
• Full appraisal
• Automated valuation model
• Deed in Lieu – The HAFA program offers you the option to transfer the title or ownership of the property to the investor in order to satisfy your mortgage and avoid foreclosure. This process is referred to as a deed-in-lieu of foreclosure. You can explore this option if you are deemed not eligible for the HAFA Short Sale Program.

What can you expect with the HAFA program?

Step 1 – call us at 719-260-7777 to request assistance and explore your options under the HAFA program. We can provide you with a Loss Mitigation Financial Package via mail, e-mail or fax.

Step 2 – if you do not wish to pursue or are deemed ineligible for a modification and want to sell your home you have that option.

Step 3 – usually a period of 120 calendar days is allowed to market and sell your home.

Step 4 – once a qualified offer is obtained, we will allow up to five business days to submit for approval. We encourage you to submit the offer immediately upon receipt to expedite the review process.

Step 5 – if you are approved for the HAFA short sale or deed-in-lieu, a qualified loan specialist will contact you to discuss the terms of your eligibility.

LOSS MITIGATION AND EXPLORING ALTERNATIVES TO FORECLOSURE

During the course of home ownership, increased expenses or changes in your family income may make it difficult to pay your bills including your monthly mortgage payments. You should always keep your mortgage payments current if possible. But if you cannot continue to make your monthly mortgage payments for reasons beyond your control, please contact us to discuss various alternatives to foreclosure depending on your specific circumstances.

If your payment difficulties are temporary, you may qualify for one of the following options:

• Reinstatement – this is the payment of the total amount due in a lump sum by a specific date.
• Forbearance plan – this allows you to reduce or suspend payments for a short time and then bring your loan current. A forbearance plan may be combined with a reinstatement when you know that you will have enough funds to bring your loan current at a later date, such as a tax refund, insurance settlement, or investment reaching maturity.
• Repayment plan – this is an agreement to resume making your regular monthly payments plus a portion of the past due amount each month until you bring your loan current.

If your payment problem is long-term or it is not likely that you will be able to bring your loan current at any time, other options may be appropriate including the following:

• Modification – if you are able to make some monthly payment but are unable to bring your loan current, a modification changes the terms of your loan permanently to make the monthly payments more affordable. These changes may include one of more of the following: adding the missed payments to the loan balance, reducing the interest rate or extending the term of your loan.
• Sale of property – the property is put on the market and the mortgage loan is paid off from the proceeds at closing. In a “short-sale” situation, the lender accepts less than the total amount due and still considers the loan paid-in-full.
• Deed-in-lieu of foreclosure – foreclosure is a legal process by which a lender takes ownership of your home if you do not make the mortgage payments. With a “deed-in-lieu” the lender accepts a transfer of the title to your home instead of foreclosure.
• Partial claim – you may be able to receive a one-time interest-free loan from the mortgage guarantor to bring your loan current. You may be allowed several years before repaying this separate loan.

Please call our Loss Mitigation Department at 719-260-7777. A member of our staff will conduct an interview to determine your circumstances and explore options that may be available to you. Please do not delay – the sooner that you call, the more likely we can find an alternative for you. In order to begin the review process, please have the following information available and ready when you call:

• Your mortgage loan account number
• A brief explanation of your financial circumstances
• Your recent income documents including pay stubs and benefit statements from Social Security, disability, unemployment, retirement or public assistance
• Your tax returns from the previous two years
• A detailed listing of your monthly household expenses

The U.S. Department of Housing and Urban Development (“HUD”) sponsors housing counseling agencies throughout the country that provide advice and guidance regarding mortgage loan defaults, foreclosures, credit issues and foreclosure alternatives. You can find a HUD counselor in your area by visiting the HUD Website or by calling HUD toll-free at 800-569-4287.

NOTE: THIS IS AN ATTEMPT TO COLLECT A DEBT AND ANY INFORMATION OBTAINED DURING A CALL WILL BE USED FOR THAT PURPOSE. IF YOU ARE CURRENTLY PROTECTED BY THE FILING OF A PETITION IN BANKRUPTCY OR HAVE BEEN DISCHARGED IN BANKRUPTCY, THIS SUMMARY IS FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSIDERED AS AN ATTEMPT TO COLLECT THE DEBT.

Disclaimer: Not all loans will be eligible for program consideration. Program outline is subject to change. Please continue to contact us as other options may be available