Unfortunately HAFA, the federally subsidized program that helps individuals avoid foreclosure, did not include federal loans to the equation. HAFA along with Fannie Mae and Freddie Mac have finally found a mutual understanding and it looks as though HAFA will now assist those with Fannie and Freddie loans starting August 1, 2010.
This will allow just about every homeowner to be eligible for the HAFA program through HAMP. Although HAFA eligibility for Fannie Mae and Freddie Mac will not start until August sellers can already start the process through HAMP as it will lead directly into the program in August.
Many questions can be answered on the government website in regards to HFAA eligibility and HAMP eligibility. We suggest you take some time to look over these sites to find out whether or not you fall under the HAMP or HAFA eligibility category.
Freddie Mac's current program will allow the liens to be subordinated. The junior liens, which will be categorized by priority, will receive no more than 6% of their unpaid principal balance with a cap of $ 6,000. This will allow for a release of these subordinate liens and satisfaction of the debt. As an example if a home has two mortgages with the 2nd HELOC having a balance of $ 125,000, and a $ 1,500 HOA lien, the 2nd HELOC will get $ 6,000 and the HOA will receive nothing.
Freddie Mac will accept the minimum acceptable for the short sales net proceeds to satisfy the total amount owned of the note and the release of the lien.
No promissory note will be required by Freddie Mac, nor will any cash contributions be required from the borrow. In order for escrow to close under the program all subordinate lienholders will be required to release all liens without promissory notes or cash contributions.
Fannie Mae has offered higher incentives for servicers. They are currently offering $ 1,500 to $ 2,200, which is the max under the Treasury program.
If you have more questions about HAMP or HAFA eligibility please be sure to check the Fannie Mae and Freddie Mac websites to get updated information along with the qualification guidelines. These programs have been put in place to help homeowners avoid the foreclosure process.